Inflation unexpectedly picked up speed in January. The Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred inflation gauge—came in higher than market estimates.
There’s concern that the Federal Reserve’s aggressive interest rate hike may tip to the U.S. economy into a recession.
We talked to Carol Roth to get her take on the Fed’s inflation fight. Roth is a former investment banker and author of the book “The War on Small Business: How the Government Used the Pandemic to Crush the Backbone of America.”
She talked about how the Federal Reserve doesn’t have the tools to address supply issues—for example, increasing oil supply. She says policies that could address the undersupply issues in energy, labor, and housing would have an immediate, as well as long-term, impact on bringing down inflation.