Surveillance: Inflation Expectations with Rajan (Podcast)
Bloomberg Surveillance
00:00
The Great Fed Conundrum of 20 22
The market was not reacting a earlier in the year to anticipation that the fed would do something. The great fed conundrum of 20 22 is just how much growth has to come down in order to meet their goal of bringing down inflation. Do you think it's worth it to curtail employment, to potentially send the economy into a recession, if that's what it takes to bring down inflation? There are two sources of of concern, right? One is that inflationary expectations get more intrenched as you see higher inflation over a sustained period. Second is that translates into workers demanding higher wages, and you get the wage price spiral.
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