4 min read.Updated: 03 Feb 2022, 01:20 AM ISTRahul Jacob
A US Fed caught behind the curve on price stability poses major risks for emerging markets as well
One of the quirks of American English is that “momentarily" means in a moment, rather than for a short time. Last year, the US Federal Reserve’s repeated use of “transitory" in its discussion of inflationary pressures on the US economy, ranging from shortages of semiconductor chips to bottlenecked supplies because US ports had too few workers and shipping lines too few containers, perhaps also created some linguistic confusion. In December, US inflation rose a staggering 7%, a four-decade high, with even core inflation (excluding fuel and food) up 5.5%.