The Fed should tighten monetary policy soon and decisively to address what could lead to “particularly persistent” inflation, World Bank chief economist Carmen Reinhart told Reuters.
Reinhart, who has been warning for some time that supply chain shocks could lead to continued inflation in the US and other countries, said any delay by the Fed would only prolong the problem.
“If inflation is indeed more persistent, my final conclusion about the Fed’s policy is that if you do more, it will be better than doing very little and with a long delay,” Reichart said.
Reinhart said the Fed was sending messages of moderate tightening based on historical data, but could change the data rate of recent data.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
