The Fed prepares for the next recession

But is it hastening one in the process?

Workers commuting.
(Image credit: iStock)

This afternoon, the Federal Reserve will finish its last meeting of the year — and Janet Yellen's last as Fed chair. Expectations are more or less unanimous that it will hike interest rates by 0.25 percent, from a 1-to-1.25 percent target to 1.25-to-1.5 percent one. Its reason for doing so is clear enough: It wants to prepare for the next recession, whenever it comes.

Unfortunately, that's not a good reason. In fact, it's a terrible one.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More
Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.