Will the RBI have the gumption to follow the Fed?3 min read 29 Aug 2022, 02:38 AM IST
For a country already battling inflation, higher imported inflation should normally evoke only one response: higher interest rates. Even if it hurts growth, as it is bound to.
Global markets, doubtful about the future course of action of the US Federal Reserve in the run-up to the just-concluded Jackson Hole conference in Wyoming, US, now have nowhere to hide. Fed Chairman, Jerome Powell, couldn’t have done more to dispel all doubt. The "overarching focus" of its decision-making body, the Federal Open Market Committee (FOMC), is "to bring inflation back down to our 2 percent goal", said Powell in his much-awaited speech at the start of the conference.
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