I don’t think the Fed’s projected rate hikes will be sufficient: former Richmond Fed president
Jeffrey Lacker, former president and CEO of the Federal Reserve Bank of Richmond, tells BNN Bloomberg that there is now a momentum to inflation, and that the U.S. Fed Chair Jerome Powell should have moved to control it in the fall.
He says the U.S. achieved price stability through preemptive tightening on early signs of inflation, but the Fed abandoned this approach in 2020. He adds, however, that the Fed is moving in the right direction now, and that Wednesday’s 25bp rate hike was welcome, if overdue.