U.S. Chamber Declares Fed Action on Interest Rates Unwarranted

"The Fed's rush to raise interest rates is unwarranted. The economy had already begun to show signs of slowing, and core inflation had increased only modestly over the last few months," said United States Chamber of Commerce Chief Economist Martin Regalia.

"The Fed chose to look at the tight labor market indicators, and to ignore recent productivity gains," he added. "They clearly had room to wait. If this were a football game, they would draw a penalty flag for 'piling on.'

"Today's increase is expected to prompt commensurate increases in bank prime rates, a move that will hit smaller businesses with limited alternative borrowing sources the hardest," Regalia concluded.

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