Top Chicago Economists Expect Interest Rates to Peak Around 5.5%
- Fed will keep rates higher for longer to control inflation
- Loss of credibility in the 1970s led to double-digit rates
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The Federal Reserve will raise interest rates by another percentage point as it fights high inflation, according to three top economists.
Rates are likely to peak at about 5.5% and will remain higher for longer to contain spiraling prices of everything from food to fuel, professors Wenxin Du, Randall Kroszner and Raghuram Rajan said Tuesday at a University of Chicago Booth School of Business event.