The Federal Reserve (Fed) has made a mistake by leaving its target range unchanged at 3.5% to 3.75%, ignoring the current weak economy and not changing the rate it pays on nearly $3 trillion of bank reserves. This decision was seen as a sign of weakness by the Fed, which mistakenly believes prosperity causes inflation. The difference between short-term interest rates on Treasury securities and long-term ones is too narrow, with the one-month Treasury bill rate at about 3.7%. Given that the ten-year Treasury bond is yielding around 4.25%, that Treasury bill rates should be little more than 2 1/2%. Fed Chairman and Chief Executive Officer Jerome Powell's comments about remaining in office if no successor is confirmed, were seen as an attempt to signal permanence during a period of policy failure. High rates are not costless, they punish homebuyers, freeze housing activity, discourage business expansion, and increase the financing burden across the economy. The Fed has an institutional bias against economic growth, but these numbers don't indicate a booming economy.