Federal Reserve’s Musalem: Higher real interest rates should be addressed through rate hike policies

Odaily reported that Federal Reserve’s Musalem stated that higher real interest rates should be addressed through rate hike policies. It is currently unclear whether the U.S. is in a period of high productivity growth. The Fed cannot rely on productivity to solve inflation issues. A better policy is to curb demand and inflation. Inflation is significantly above target, and expectations are rising. (Jinshi)