Getty Images U.S. Federal Reserve Chairman Jerome Powell at his news conference on WednesdayThe Federal Reserve made a small mistake by raising interest rates again on Wednesday -- one it apparently plans to compound, over and over again, until the folly of its ways becomes clear. As everyone knows, the U.S. central bank raised the federal-funds rate by a quarter of a percentage point, to a target range of 1.5% to 1.75%. The Fed’s statement and accompanying forecast point to a perception that the economy is accelerating and that a boost in inflation is imminent. But it’s not true. And by planning to boost rates two more times this year and three times next year, the Fed can do real damage to housing markets, consumers — and, most importantly, the standard of living of middle-class workers who have been left behind by the booms in upper- end incomes, net worth and financial markets for the last 45 years. Liberating the middle class from stagnation is the work former Fed Chairwoman Janet Yellen (and her predecessor Ben Bernanke, to some degree) began by forcing interest rates to near-zero amid 2008’s financial crisis and then, significantly, keeping them there long after politicians began bleating about the integrity of the dollar and the end of the world. “The economic outlook has strengthened in recent months,” Fed Chairman Jerome Powell said after his first meeting at the head of the Fed’s conference table. “Several factors are supporting the outlook: fiscal policy has become more stimulative, ongoing job gains are boosting incomes and confidence, foreign growth is on a firm trajectory, and overall financial conditions remain accommodative.”via