Fed policy has remained very dovish even though several qualifiers have been met that would signal a raise in stricter monetary policy. We are not getting the higher interest rates we need. They have reduced the amount of money they are printing. Hawkish policy is the only way to go now and if they do not change policy I doubt they ever will. It's just too easy to maintain the easy rates we have now. It hurts people in the long run but in the short term is great. Stocks have risen, jobs are created, and people take out loans which are all good things. Without a more normal level of rates and a change though we could be stuck in a trap that will never allow rates to go up without fear of economic collapse even if that is extremely unlikely.
It has been too long with soft rates and I'm personally tired of the low rates. I want better returns on my money that I'm saving.
I also think that the Fed has decided to wait because they are scared that the market might react poorly or the economy as a whole might not like the shock. But if the Fed tells people they are going to do this at this time, it will not be a shock and economic actors can plan accordingly. I've heard for years that the Fed will raise interest rates and stop printing money. Hopefully it will happen sooner rather than the middle of next year. Fed also please be more open with your plans and less volatility will be present.
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