The Fed Must Think Creatively Again
Supposedly transitory one-off price adjustments in the United States have become pervasive, and a major inflation shock is now at hand. But despite the flashing warning signs, the Federal Reserve remains wedded to a monetary-policy strategy born of the low-inflation past.
https://prosyn.org/IZuX2Cq
NEW HAVEN – The transitory inflation debate in the United States is over. The upsurge in US inflation has turned into something far worse than the Federal Reserve expected. Perpetually optimistic financial markets are taking this largely in stride. The Fed is widely presumed to have both the wisdom and the firepower to keep underlying inflation in check. That remains to be seen.