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The Fed's Mistake?

In a speech to the Economic Club of New York on Wednesday, Federal Reserve Chairman Jerome Powell said interest rates are just below the range of estimates that would be "neutral" for the economy.

For years after the Great Recession the Federal Reserve kept short term interest rates near zero percent. That meant money was cheap, making it easier for people and companies to borrow, which helped keep the U.S. economy growing.

But then in late 2015 — with unemployment near five percent — the Fed became increasingly worried about the economy overheating, and it started gradually raising rates. Adam Ozimek, a senior economist at Moody's Analytics, thinks that was a big mistake. Today on the show, he tells us why.

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