Rate hikes are a way to keep our US dollar high with respect to other currencies. After other currencies get higher in comparison to our dollar, you can bet on another US rate rise in reaction.
Our fattest political contributors will continue to be able to buy containers of imports for less and get more for less while vacationing in foreign countries. That way, they will be able to keep us up to date on European social politics and feel better about further disrespecting US social conservatives and letting Hillary get into office in 2008. Regardless of which party gets executive office, their daughters will remain in power here.
...see how it all works out?
Every time they signal they might stop raising rates, the dollar drops against other currencies. And to keep the T-bill market going, they have to not drop rates.
They are between a rock and a hard place. Rate increases hurt the housing sector. Without rate increases, foreign investment dries up.
Glad I ain't a banker.
It's one way, but the best way is to let the economy grow while restraining government growth.