ISMAIL LAGARDIEN: Inflation is coming — think about the poor
“Post-pandemic inflation” has risen to levels not seen in at least 40 years, especially in rich countries, and has led to ever louder calls for central banks to tighten monetary policy more aggressively. There is serious concern that in the US especially, inflation will result in a series of rate increases starting in March. This much was gleaned from comments in January by Jerome Powell, head of the US Federal Reserve.
Powell refused to discount the possibility that the Fed would raise rates by half a percentage point at one of its forthcoming meetings. This would be twice as much as its typical quarter-point cadence. If this happens it may set in motion a series of policy changes around the world, because the Fed has not implemented a 500-basis-point increase for more than 20 years...
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