Stephen Roach: Fed is ‘in denial’ and should hike interest rates immediately to cut stagflation risks

If the Fed doesn’t act, he warns rising prices could send shockwaves through the economy.

“They’re in denial. They continue to harbor the view that these are transitory Covid-related rebound effects,” the Yale University senior fellow told CNBC’s “Trading Nation” on Monday. “I would just put the burden of responsibility on the Fed. The longer they defer a more meaningful monetary tightening, the great the risks of stagflation.”

We are primarily funded by readers. Please subscribe and donate to support us!

Roach has been warning stagflation was one supply chain accident away. Now, he contends the U.S. is in the throes of a broken supply chain while consumer demand is at a fever pitch.

www.msn.com/en-us/money/markets/fed-should-hike-interest-rates-immediately-to-cut-stagflation-risks-economist-stephen-roach-suggests/ar-AAQKkap

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.