✉news BusinessEconomy first seen 23 h ago, last 8 h ago, peak #14
Supply Shocks Are Here to Stay, and the Fed Must Adapt
Original: Opinion | Supply Shocks Are Here to Stay. Is the Fed Ready to Face That Fact?
A New York Times opinion piece argues that supply shocks — disruptions to the flow of goods, energy and labor — are becoming a permanent feature of the global economy rather than temporary events. It questions whether the Federal Reserve's interest rate tools, designed mainly to manage demand, are adequate for an era of recurring supply-driven inflation, and urges policymakers to rethink their framework.
Why now: Ongoing inflation and trade and geopolitical disruptions are renewing debate over how central banks should respond to supply-driven price pressures.
Federal ReserveThe New York Times
Evidence
- Opinion | Supply Shocks Are Here to Stay. Is the Fed Ready to Face That Fact? · The New York Times
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