Nearly All Monetary Rules Say The Fed Should Raise Rates
American Institute For Economic Research·2026-06-17·via All Articles on Seeking Alpha
Summary
The Federal Open Market Committee is widely expected to leave its policy rate unchanged this week.
Inflation has continued to accelerate, supply disruptions have lingered longer than many expected, and even some of the rules that previously supported holding steady are now tilting toward tighter monetary policy.
The latest Monetary Rules Report from AIER’s Sound Money Project shows that the Fed’s current policy rate falls below the range recommended by leading monetary rules.
This week’s meeting marks a shift to a new regime at the Fed, as Kevin Warsh takes over as chair.
Getty Images
By Matthew Schaffer
Continued inflation, hawkish regional bank presidents, and 11 of 12 monetary policy rules suggest the Fed should raise rates. The price of the Fed’s “patience” could be paid economy wide.
