According to the Federal Reserve, consumer price growth is the main problem in the US. All other issues are of minor importance.
Providing his recent speech, Fed Governor Philip Jefferson said that inflation was the gravest problem for the US. “Inflation is the most serious problem facing the US Federal Reserve and may take some time to address,” Fed Governor Philip Jefferson said. “Restoring price stability may take some time and will likely entail a period of below-trend growth,” Jefferson added. Notably, Philip Jefferson not just highlighted the problem but also offered several solutions, including interest rate increases to battle price pressures. “I want to assure you that my colleagues and I are resolute that we will bring inflation back down to 2%. The full effects of monetary policy take time,” the economist shared his plans for the future.
The Federal Reserve has chosen an aggressive approach aimed at capping inflation, which has already reached multi-year highs. Since the beginning of the year, the benchmark rate has been raised to 3.00%-3.25% from almost zero. According to estimates, the US interest rate will hit 4.6% by the start of the next year.
