As the consumer price index soars to 40-year highs of well above 8%, Richmond Federal Reserve President Thomas Barkin said Friday that interest rate increases will be necessary until inflation reaches its target rate of 2%.
This news indicates the fed's commitment to steady rate hikes, regardless of the short-term economic costs.
This apparent resolve has not stopped the bi-partisan criticism of the Fed's inconsistency, however, with both parties continually arguing either for Reagan-era interest rate hikes or fresh economic stimulus.
According to a CNBC report, Berkan said that “You’d like to see inflation running at our target, which is 2% at the PCE, and I’d like to see it running at our target for a period of time.”
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Joseph Hugh
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