In this episode, we (Gary Gensler and Simon Johnson) explore what’s next for the Federal Reserve - given inflation continues to be above their 2% target.
How should the Fed navigate the Iran conflict continuing to keep energy and fertilizer prices elevated; the AI investment booming pushing up prices for chips, electricity, and construction; and high tariff rates? With bond yields pushing up borrowing costs while Europe grabbles with unrest over fiscal and debt imbalances, what might it mean for US inflation and employment growth.
With sticky inflation and the US economy still running strong, when might the Fed raise rates again? How could a retrenchment of the AI investment boom or a new European debt crisis impact the US and Fed policy?
