Nick Timiraos: The Federal Reserve is worried that the real interest rates are too high and will abandon its tightening tendency this week

"Federal Reserve mouthpiece" Nick Timiraos wrote that the Federal Reserve will not cut interest rates at this week's meeting because the economy has been steadily growing. Although in the past seven months, the monthly inflation rate excluding food and energy has been at or below 2% for six months, the Fed hopes to ensure this situation can continue before cutting rates. This week, Fed officials may take a symbolically significant step of no longer indicating in policy statements that there is a greater possibility of interest rate increases than decreases. Typically, the Fed would cut interest rates due to a sharp slowdown in economic activity, but until late last year, economic growth was still surprisingly strong. Instead, they are considering whether softening inflation means that if no action is taken, real interest rates could impose too many restrictions on economic activity.