Volcker Is on the Spot Again

Will stronger growth force the Federal Reserve to raise interest rates?

Ever since the recovery began in December 1982, economists have been scanning the horizon for shoals that could endanger or wreck growth. Last week a couple appeared, and it will require some expert seamanship by policymakers to keep the economy on course. Early in the week, big U.S. banks boosted the bench-mark prime rate from 11% to 11½%, the first such increase in seven months. The very next day, the Commerce Department weighed in with a "flash estimate" showing that the gross national...

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