Today’s decision by the Federal Reserve to keep short-term rates unchanged is welcome. The data clearly indicate that much slack remains in the economy and inflation is not a danger the Fed needs to be worried about right now. We hope they continue their pragmatic, data-based approach and allow unemployment to keep moving lower, and only tighten after there is a significant and durable increase in inflation.

Tightening before the economy has reached genuine full-employment is not just a mistake, it’s a regressive mistake that would hurt the most vulnerable workers—low-wage earners and workers from communities of color—the most.

Read EPI’s research on the Federal Reserve and Monetary Policy.