Fighting the Right Foe?

Critics say the Federal Reserve's determination to drive up interest rates is hurting the recovery

Is this any way to treat the most promising recovery in years? With the U.S. economy finally showing solid growth, the Federal Reserve has jacked up short- term interest rates three times since February and is widely expected to raise them again this week. Never before has the Fed moved so aggressively to battle a threat of inflation that few others can see.

Critics of the central bank contend that Fed Chairman Alan Greenspan is jeopardizing the recovery by fighting the wrong war. Not only is inflation dormant, they argue, but Americans are working more efficiently in a fiercer, more global...

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