Inflation has now exceeded the Federal Reserve’s 2% target for more than 65 consecutive months, dating back to 2021. The new Fed chair, Kevin Warsh, has declared a ‘no tolerance’ policy for elevated inflation during congressional testimony. The Federal Open Market Committee voted to hold the federal funds rate steady at 3.50%-3.75%, though three members dissented in favor of a 25 basis point increase. This position marks a significant departure from the flexible average inflation targeting framework adopted under Jerome Powell.
Source: Read the original article
