Fed's attempts to lift rates falter as firms waver

Washington

IT'S like bringing a knife to a gunfight.

That's how McKinsey & Co consultant Walter Baker describes the plight of corporate salespeople doing battle with purchasing managers in the US today.

The vendors want to charge more for the in-demand products they're selling but are afraid of losing the sale. The buyers, armed with sophisticated tools and in-depth knowledge of the competitive landscape, see no danger in refusing to pay up.

The lopsided tug-of-war goes some way to explaining why Fede…