The Federal Reserve last week extended its year-long fight against high inflation by raising its key interest rate by a quarter-point despite concerns that higher borrowing rates could worsen the turmoil that has gripped the banking system. Retired Ripon College economist Paul Schoofs says he believes it was the right move. “I think they made a good compromise,” Schoofs told WFDL news. “They could have raised rates more, some called for them to do nothing, but in order to demonstrate they’re still committed to the inflation fight it was important to have another small rate increase.” The Fed also signaled that it could be nearing the end of its aggressive streak of rate increases.
