The fight of the Federal Reserve (Fed) Against inflation may lead to a recession in the US economy, but that is a risk the Fed will have to take, Richmond Fed President Thomas Barkin said on Wednesday, Reuters reports.
Key points
“The Fed’s rate hikes are challenged by artificial elements of today’s economy, such as high consumer savings and labor shortages.”
“We must not wait for these issues to resolve themselves, we must do what is necessary to bring inflation back to the 2% target.”
“Given the experience of the 1970s, the Fed cannot let inflation fester and expectations rise.”
“The US could continue to face labor restrictions in the future.”
“Supply chains are improving, but slowly and inconsistently.”
Market reaction
The dollar showed no immediate reaction to these comments and the Dollar Index was last up 0.35% on the day to hit 110.00.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
