Two Big Things You Need to Understand About Inflation

If the Fed is forced to cool an overheating economy, there are only painful choices.

Treasury Secretary Janet Yellen caused some consternation last week when she raised the possibility that “interest rates will have to rise somewhat to make sure our economy doesn’t overheat.” Stock markets fell, and Yellen clarified her remarks by saying that she was neither forecasting nor recommending an interest rate hike.