Dean Baker: Truth Has No Place in the Attack of Inflation Hawks

There is a growing push by inflation hawks to get the Federal Reserve Board to raise interest rates. They argue that inflationary pressures are picking up steam and if the Fed doesn't move quickly, we will soon be caught up in an inflationary spiral.

If this sounds obscure and esoteric, then you better do some quick homework. The Fed's decisions on the future course of interest rates will have a huge impact on the job prospects and livelihoods of tens of millions of families. If the Fed raises interest rates to prevent inflation, it would be slowing the economy and keeping people from getting jobs. Furthermore, slower job growth will weaken the labor market by raising the unemployment rate.