B**T
发帖数: 1 | 1 Mr. Powell on Thursday said that in such a scenario, the central bank would
be reluctant to shift from raising rates to cutting them
Rep. Trey Hollingsworth (R., Ind.) said he was worried that by waiting for
evidence of inflation to slow, the Fed would rely heavily on an indicator
that lags economic activity
Mr. Powell said, “I think we’d be reluctant to cut.” （rate）
in the mid-1970s, for example, the Fed raised rates aggressively but not
enough to break the back of high inflation, forcing stiffer action later.
higher prices could change consumer psychology in ways that sustain high
inflation
Economists believe expectations of future inflation can be self-fulfilling,
which means the Fed could be required to lift rates to levels that push even
harder on the monetary brakes
rate increases would do little to relieve rising energy or food prices and
that they could exacerbate supply shortages by slowing investment |
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