, Milken Chief Economist William Lee went much further than Bell, arguing that the Fed needs to keep raising rates. He pointed to continued consumer spending.
Bell says that the long period of rock-bottom interest rates has allowed many consumers and businesses to borrow or refinance their debt a very low rates. That's insulated many of them from the effects of the Fed's moves over the last year. There are clearly signs that inflation has slowed down, as the prices of items like houses or used cars isn't going up at the rate it was a year ago. And Lee pointed to decreases in parts of the economy that are more sensitive to interest rates.
Meanwhile, inflation excluding housing costs, a measurement the Fed has been emphasizing, is well above pre-pandemic levels. She says all of that could translate to more durable inflation than investors are expecting — or the Fed wants to see.even after supply-chain problems and other inflation causes are resolved. As a result, consumers think that inflation is going to remain elevated. Bell says that belief can itself contribute to more inflation.
Belgique Dernières Nouvelles, Belgique Actualités
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