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Barry Wood

Barry Wood

Barry D. Wood is a journalist, author and educator.
Barry D. Wood is a journalist, author and educator.

Opinion | Federal Reserve must stay the course in fight against inflation

If the Fed cuts interest rates after making progress on bringing down consumer prices, it will lose its hard-earned inflation-fighting credentials. Giving in to outside political or economic pressure to ease up would put at risk significant gains that have already been achieved.

The Federal Reserve must act to ensure stable prices. Global markets need to hear that rates are heading higher and that the US is determined to forestall inflation as it moves to restore financial stability

Pandemic-induced remote working is altering the way people live their lives, and affecting housing prices in the US. But there are also signs that the trend may accentuate wealth inequality, and aggravate mental health problems.

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Thanks to government support, many are being paid not to work. There are fears the Fed has distorted economic activity and laid a foundation for high inflation. As the US has had no significant inflation for two decades, most Americans are unaware how debilitating it can be.

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Related Topics
US Federal ReserveUnited StatesRussiaCoronavirus pandemic