Fed fooling itself if it thinks uncertainty will ever clear

The more the Fed procrastinates, the more we get the feeling that officials are fooling themselves into thinking that, if they only just wait a little longer, all the uncertainty will clear up and they can raise interest rates with no danger of making a mistake. Unfortunately, the real world doesn’t work like that. We now expect the Fed to delay the first rate hike until December, but it’s possible that it will find another reason to wait until early 2016. Beyond that, however, the longer the Fed delays now, the higher interest rates will eventually have to go. Inflation is coming.