Skip to main content

Fed too complacent on inflation

We don’t agree with Janet Yellen’s view that the recent rise in inflation is just noise. Instead, it is clear to us that a widespread strengthening in price pressures in areas as diverse as rents, medical care, clothing and new vehicles is underway. The big risk is that a larger rise in inflation than the Fed expects prompts it to raise interest rates earlier and further.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.