Fed’s Rate Boosts Backfire by Stimulating Economy

Federal Reserve Chairman Alan Greenspan calls it a “conundrum.” Former Fed colleague Laurence H. Meyer calls it “extraordinarily unprecedented.”

The Fed has raised its target interest rate six times since June 30, intending to prevent the U.S. economy from overheating later this year. Instead, the increases are having the opposite effect: They’re spurring the economy, not reining it in.