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Is the Fed about to err with another rate hike?

Fed officials appear to have embarked on a co-ordinated attempt to prepare markets for another interest rate hike at the upcoming FOMC meeting in mid-March. The improvement in the survey evidence would certainly seem to justify additional monetary tightening. But the incoming activity data have been much more mixed, with most economists consequently revising down their forecasts for first-quarter GDP growth last week. Is the Fed in danger of making a mistake?

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