Inflation & Prices
Inflation Would Be Same Today Even if Fed Had Hiked Interest Rates Earlier, New Model Shows
- Bloomberg Economics model says liftoff timing mattered little
- Fed would have required ‘sharp recession’ to prevent inflation
This article is for subscribers only.
Even if the Federal Reserve had begun raising interest rates nine months earlier, US inflation wouldn’t be any lower today than it is now.
That’s the upshot of simulations using a new Bloomberg Economics model, according to an analysis published Wednesday by David Wilcox, Bloomberg’s director of US economic research.