Why a US Fed interest rate hike may be on the cards
It’s time to close an era of easy money.
Sign up now: Get ST's newsletters delivered to your inbox
The economy has hovered near full employment for 55 consecutive months, yet the Fed has missed its inflation target for 63 straight months.
PHOTO: REUTERS
Ruchir Sharma
This week, Kevin Warsh leads his first meeting as chair of the Federal Reserve, and he should start by making the central bank do the job it has been failing at for years.
That job is to set interest rates at a level that will maximise employment and stabilise prices. Over time, the Fed has come to worry only about jobs and make excuses for inflation – in short, showing a bias for easy money that has lately hit historic extremes.
