The U.S. Federal Reserve’s response to tame inflation
Molefe Leballo
The year 2022 is going to be a challenging time for the US Federal Bank as it tries to navigate the prevailing economic environment.
We shall be looking at the measures that the Fed has at its disposal to reign in rising inflation that has been stoked by geopolitical tensions, supply chain bottlenecks, Covid-19 pandemic, high energy, and commodity prices. The Fed is caught in a tight position whereby it must fulfill its primary mandate, which is price stability, while taking in cognisance the fragile US economic growth and tight labour market considerations.
