Yes, the Fed should be raising rates further
I'm in agreement with Jeff Gundlach that the Fed shouldn't be so slow about raising interest rates.
“What are you waiting for? You just upgraded the economy right here,” he said, referring to Fed Chairman Kevin Warsh's comments about a strong macroeconomic environment during the central bank’s post-decision news conference. “We’re headed to 4% handle headline CPI. The commodity index is rising in a bull market, and I don’t understand why the Fed is so reluctant to move.”
There's really no reason to hold back. The economy isn't in a recession, inflation has been way too high for too long, for no good reason, and this may cause some to question if politics is getting in the way of inflation control. We're six days from an election, after all.
There's nothing that comes to my mind as justification for waiting. Even if we drop into a recession and inflation comes down, 25 basis points today wouldn't matter much, but it would have sent a signal that inflation control is important and it would have allowed for a smooth increase in the fed funds rate. This unwillingness to move until there is no choice may lead to the need for 50 and 75 basis point moves down the road.