Inflation more persistent in post-Covid era – Fed research
Study recommends aggressive tightening for longer
Inflation has become more persistent in the post-pandemic era, according to research from the US Federal Reserve – even when energy shocks and supply disruptions are factored in.
The study by Andrea De Michelis, Grace Lofstrom, Mike McHenry, Musa Orak, Albert Queralto and Mikaël Scaramucci was published on July 19. The authors believe their findings suggest central banks will find it much tougher than they expect to bring inflation down to target levels.
Their recommendation is for central banks
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