Jerome Powell, chairman of the US Federal Reserve, speaks during a hearing in Washington in July. Knowing full well that monetary policy works with lags of 12-18 months, the central bank has to be forward-looking, setting its policy rate on the basis of where it thinks inflation is heading, not where it has been. Photo: Andrew Harrier/Bloomberg
Stephen Roach
Opinion

Opinion

Stephen Roach

US inflation is set to rise. The Fed must act now

  • Stephen Roach says trade war’s impact on global value chains and the tight US labour market will fan inflationary pressures of the current US economic upturn
  • The Fed is right to press on with monetary tightening – perhaps even at a pace faster than the market expects

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Jerome Powell, chairman of the US Federal Reserve, speaks during a hearing in Washington in July. Knowing full well that monetary policy works with lags of 12-18 months, the central bank has to be forward-looking, setting its policy rate on the basis of where it thinks inflation is heading, not where it has been. Photo: Andrew Harrier/Bloomberg
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