After last week’s red-hot U.S. consumer price index reading of 6.2%, debate around what the Federal Reserve should do about inflation has reached a fever pitch. There are two prevailing schools of thought:
Some of those who side with view No. 1 argue that taking path No. 2 would choke off the swift economic recovery and leave millions of Americans unemployed. This, in effect, assumes the world’s most powerful central bank has a binary decision between sitting on its hands or throwing the U.S. into a downturn.