ALV
Autoliv, Inc.
stock NYSE

# << The Fed Is Poised for a Rate Hike. It Rarely Stops at One.
Nick Timiraos
Investors have all but concluded the [Federal Reserve](https://www.wsj.com/topics/subject/federal-reserve) will raise interest rates next week for the first time in three years. The harder question is what comes after that.
Because almost no one at the central bank thinks a quarter-point increase will do much on its own to bring inflation down, a decision to raise rates next week would reflect a judgment that [interest rates](https://www.wsj.com/topics/subject/interest-rates) have been in the wrong place. If that is the case, one increase won’t fix it.
The Fed rarely moves until officials are convinced one move won’t be enough. “If we get a hike next week, certainly we’ll get additional ones,” said Richard Clarida, a former Fed vice chair who is now at [Pimco](https://www.wsj.com/market-data/quotes/XE/XETR/ALV).
Raising rates seven weeks before the midterm elections would be complicated enough. Setting the Fed on a course for more would be harder still. President Trump, who picked Federal Reserve Chairman Kevin Warsh partly because he expected an easier relationship than he had with Jerome Powell, has said he expects the new chairman to deliver lower rates. >>
[https://www.wsj.com/economy/central-banking/the-fed-is-poised-for-a-rate-hike-it-rarely-stops-at-one-c7455e98](https://www.wsj.com/economy/central-banking/the-fed-is-poised-for-a-rate-hike-it-rarely-stops-at-one-c7455e98)

# << The Fed Is Poised for a Rate Hike. It Rarely Stops at One.
Nick Timiraos
Investors have all but concluded the [Federal Reserve](https://www.wsj.com/topics/subject/federal-reserve) will raise interest rates next week for the first time in three years. The harder question is what comes after that.
Because almost no one at the central bank thinks a quarter-point increase will do much on its own to bring inflation down, a decision to raise rates next week would reflect a judgment that [interest rates](https://www.wsj.com/topics/subject/interest-rates) have been in the wrong place. If that is the case, one increase won’t fix it.
The Fed rarely moves until officials are convinced one move won’t be enough. “If we get a hike next week, certainly we’ll get additional ones,” said Richard Clarida, a former Fed vice chair who is now at [Pimco](https://www.wsj.com/market-data/quotes/XE/XETR/ALV).
Raising rates seven weeks before the midterm elections would be complicated enough. Setting the Fed on a course for more would be harder still. President Trump, who picked Federal Reserve Chairman Kevin Warsh partly because he expected an easier relationship than he had with Jerome Powell, has said he expects the new chairman to deliver lower rates. >>
[https://www.wsj.com/economy/central-banking/the-fed-is-poised-for-a-rate-hike-it-rarely-stops-at-one-c7455e98](https://www.wsj.com/economy/central-banking/the-fed-is-poised-for-a-rate-hike-it-rarely-stops-at-one-c7455e98)