Reuters

U.S. Fed should act soon and decisively to raise rates -World Bank’s Reinhart

The U.S. Federal Reserve should tighten monetary policy soon and decisively to head off what could become “quite persistent” inflation, World Bank Chief Economist Carmen Reinhart told Reuters in an interview. Reinhart, who has been warning for some time that supply chain shocks could result in sustained inflation in the United States and elsewhere, said any delay by the Fed on increasing interest rates would just prolong the problem. “If inflation is indeed more persistent, my bottom line on Fed policy is … that if you do more now, you’ll be better (off) than if you do too little, too late,” Reinhart said ahead of Tuesday’s release of the World Bank’s World Development Report.

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