China’s Lockdowns Could Drive More US Policy Action, Says Fed’s Kashkari

[claireokc]

If lockdowns in China aimed at containing COVID-19 cause further disruptions to global supply chains, the Federal Reserve will need to take even more aggressive action to bring down “much too high” inflation, Minneapolis Fed President Neel Kashkari said on Tuesday. Speaking at an event at Luther College in Decorah, Iowa, Kashkari said in the best case scenario, the pandemic fades into the background, supply chains recover and more supply comes back online. That would help reduce upward pressure on consumer prices, which rose 8.5 percent in March, the fastest pace since late 1981. If that doesn’t happen, Kashkari said, “then our job will get harder … and we are going to have to do more, through our monetary policy tools, to bring inflation back down.” ...

Source: https://www.theepochtimes.com/chinas-lo ... 16107.html