Janet L. Yellen, the Fed’s chairwoman, and other officials have said the
Fed must raise its benchmark interest rate as job growth continues to prevent
higher inflation down the road. The strength of the January jobs report —
including faster wage growth — suggests the Fed’s policymaking
still could raise rates as soon at its next meeting in March.
But the Fed would be betting on a theory. Inflation remains low, growth
has slowed and the impact of global economic problems and financial market
volatility is unclear. If the Fed presses ahead, it could undermine the economy
just as things are getting good for the vast majority of Americans.