The Fed has been making a great effort to curb inflation in the US. In fact, the Federal Reserve is trying to battle inflation by raising the interest rate. This measure of the Reserve has got much criticism. But certain experts have suggested that this measure might ultimately solve the inflation problem that the US is going through.
However, recently, Lyn Alden, a macro analyst, has stated that all efforts made by the Fed will fail ultimately. According to him, battling inflation is not an easy task. In order to do that, the supply side of inflation has to be cut down. If you wish to learn more about the comment of Lyn Alden, then this article is the perfect stop for you. Keep reading this article to know what Alden really had to say about the Fed’s effort to curb inflation.
Lyn Alden On Fed’s Effort
Lyn Alden stated that until the supply side of inflation is cut down, no permanent fix to the inflation problem is possible. Lyn stated this in an interview with the Cointelegraph. In fact, at Jackson Hole, Jerome Powell clearly spoke about the Fed’s plans. He signalled the fact that the organisation will keep raising the hike in interest rates. He stated that the organisation is determined to bring down the inflation rate to 2%. However, this process will scorch the economy more and more. In fact, this effort by the Fed might also raise the risk of a greater unemployment level. In addition, there also remains a chance of a growing recession.
Alden however, criticised this measure. He pointed out that the crypto market would never recover until the Fed pivots its interest rates policy. According to him, the public debt is reaching a high level. This ultimately would burden the economy. In such a situation it will b difficult for the central banks to preserve the interest rates. Therefore, Alden stated that this effort of the Fed to battle inflation might not reach its aim.
Lyn Alden might be right. The increasing interest rates are really troubling the investors and the common public. The increasing unemployment rate is also worrying the experts. In addition, the risk of recession is also looming large on the horizon. However, we have seen that extreme measures have at times, worked wonders. Therefore, it remains to be seen, how the Fed ultimately battles the inflation rate.