On Wednesday’s broadcast of “PBS NewsHour,” Harvard University Economics Professor and former Chief Economist at the International Monetary Fund Ken Rogoff predicted that the Federal Reserve will “leave inflation higher for longer” due to fear of endangering the banking sector despite assurances “that everything’s really sound.”
Rogoff said, “[I]nflation is still high. It — whatever — people thought it was going to go away, it isn’t. There are lots of different measures of it, but it looks like it’s going to last for quite a while. Even on the most relatively optimistic Fed forecasts, it’s still well above their target at the end of the year. So, they don’t want that. The reason they don’t want that is, if they allow that to happen, interest rates might creep up to take that into account, and that’s really what they want to nip in the bud. But…
