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Why the Fed can’t touch some of inflation’s root causes
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fnlondon.comMarc Jarsulic is a senior fellow and chief economist at the Center for American Progress
In response to continuing core inflation, the US Federal Reserve raised the federal funds rate by 75 basis points during last week’s meeting of the Federal Open Market Committee. This will raise the cost of credit throughout the US economy, reduce aggregate demand, and lead to declines in output and employment.
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