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The economy in retrospect: Surprises in 2016?

And how did panelists' predictions pan out for the year?


Friday, December 25, 2015

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Kelly Cunningham, National University System
Answer: Interest rate hike

Instead of when the economy is strengthening, the first rate hike in nearly a decade comes at the end of a tepid recovery. The Fed painted themselves into a corner proclaiming they would raise rates when the economy was sufficiently strong. But the recovery is in fact weakening. Not raising the rate acknowledges the economy is not strong enough to withstand any increase. So they tried to mitigate it by a one-and-done miniscule 0.25 percent.