Roubini Sees Either US Hard Landing or Uncontrolled Inflation
Key to inflation is what pace of its decline will be
“The fed funds rate should be going well above 4% -- 4.5%-5% in my view -- to really push inflation towards 2%,”
The central bank’s latest dot plot of interest-rate projections published after the June policy meeting suggests that the federal funds rate will reach around 3.375% by the end of this year and almost 3.8% by the end of 2023. That’s not hawkish enough, said Roubini.
“Even if you have 3.8%, we have inflation still well above target around 8%, falling only gradually,” he said.
Isabelle Lee and David Westin Bloomberg 15 augusti 2022
From Great Moderation to Great Stagflation
Nouriel Roubini Project Syndicate 9 August 2022
https://englundmacro.blogspot.com/2022/08/from-great-moderation-to-great.html
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