While Undoing One Mistake, Is the Fed Making Another?

Monetary Policy: The Fed's decision to hike its benchmark funds rate a quarter-point to a range of 1%-1.25% has been styled as a "normalization" of Fed policy. Maybe so. But it's also a tacit admission that its past policies were a mistake.

We say this because the Fed held interest rates steady at an unprecedented low rate of 0% for nearly eight years.