Are Profit Margins Driving Inflation?

The Federal Reserve’s aggressive tightening of monetary policy is meant to fight inflation. But that only works if companies don’t engage in price gouging. Both corporate mark-ups and profit margins have risen rapidly since the pandemic. So, does the Fed need to keep going? Madison Mills explains the latest outlook from a Bloomberg survey of professional and retail investors. (Corrects characterization of poll asking about inflation and price hikes.)