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by Benn Steil
– co-authored with Emma Smith
Appeared originally at Foreign Affairs 02 February 2016
How the Fed Should Tighten Monetary Policy
On January 27, the U.S. Federal Reserve held interest rates steady and, in a modest nod to a market that has been consistently more fearful about the economy than the Fed itself, dropped a line from its December statement saying that the risks to the outlook were “balanced.”