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

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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.”

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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

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