Federal Reserve's Musalem: Should respond to higher real interest rates through interest rate hikes

Odaily News: Federal Reserve's Musalem stated that the central bank should respond to higher real interest rates through interest rate hikes. It is currently impossible to determine 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 suppress demand and inflation. Inflation remains significantly above target, and expectations are rising. (Jin10)