5min chapter

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Raghuram Rajan: Why The Banking Crisis Isn’t Over

Capitalisn't

CHAPTER

The Fed's Path Forward on Fighting Inflation

There's clearly a lot of pressure from at least some segments in the business community to stop raising rates. There's political pressure on the Fed to do that too. The problem the Fed has is every time it seems like as if it's going to slow or even pause, the financial markets take off. If there is financial stability and we haven't seen more slack built up in the labor market, may well be to continue the policy of rate increases.

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