Central banks have to ensure that the inflationary mindset stays under control

Ron Markus
Monday, 1 November 2021
Ron Markus

The Fed has to perform a balancing act this week. Markets expect the US central bank to tighten monetary policy in the coming quarters. But if the Fed does this too enthusiastically, it risks a policy mistake. If she is too reserved, she can get too far behind the curve, allowing an inflationary psychology to take hold of the markets.

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