Moody's warns: The Federal Reserve may be forced to raise interest rates as inflation expectations surge sharply

Odaily reports that Mark Zandi, chief economist at Moody’s, pointed out that although the US GDP has risen this year and the economy seems resilient, warning signals are already flashing. The Federal Reserve, under the new chairman Kevin Walsh, may face problems because it is currently unable to adopt policies to boost the economy and support job growth, namely interest rate cuts. During the Iran war, US inflation expectations surged sharply. Zandi stated that if inflation expectations continue to climb, the Federal Reserve may be forced to raise interest rates, even if this triggers a full-scale economic recession, as policymakers would view controlling inflation as their top priority. (Golden Ten Data)