In the rarefied world of the Federal Reserve, the actions by the mandarins of fiscal policy can be based on obscure and secret economic data.  So we don't really know why Chairman Yellen switched gears and raised interest rates for the first time since 2007.  She promises a gradual rise in interest rates with a target of 1.5% by the middle of 2017. The economy, the Fed says, is gradually improving.  I would add to that "in some places."  This "recovery" is the weakest in history, and the real jobs numbers – when you add in those too discouraged to look for work and part timers who want full-time jobs – haven't budged much since 2011. Profits are up, as is the stock market.  But the burden of gradually rising interest rates on the private sector is only half the story.  The real issue is that rising interest rates – even if done gradually – mean a big increase in servicing the debt. In fact,...(Read Full Post)