Opinion: US inflation could explode to 10 per cent by next year
14 Jan, 2021 10:24 PM
5 minutes to read
The US faces a tough year as it continues to struggle against the pandemic. Photo / Getty Images
The US faces a tough year as it continues to struggle against the pandemic. Photo / Getty Images
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Opinion:
Inflationary pressures are building up rapidly across the US economy, forcing the Federal Reserve to shift gears and signal a much earlier rise in interest rates than previously suggested. David Clarida, the Fed s vice-chairman and policy guru, has announced that rate rises will kick off once US inflation tops 2 per cent and remains there for a year. While the language was couched in reassuring terms, it amounts to regime change in monetary policy and has serious implications for overheated asset markets.
US eyes early rate rise as inflation threatens to bite
Indications that increases will begin after inflation has been at 2pc for a year amounts to regime change in monetary policy
14 January 2021 • 3:00pm
Inflationary pressures are building up rapidly across the US economy, forcing the Federal Reserve to shift gears and signal a much earlier rise in interest rates than previously suggested.
David Clarida, the Fed’s vice-chairman and policy guru, has announced that rate rises will kick off once US inflation tops 2pc and remains there for a year. While the language was couched in reassuring terms, it amounts to regime change in monetary policy and has serious implications for overheated asset markets.