Once inflation ‘gets out of hand,’ hard to ‘bring it under control’: Harvard economist
Harvard University economics professor Kenneth Rogoff argues that once the Fed raises interest rates, it may be difficult to ‘control’ the economy.
Harvard University economics professor Kenneth Rogoff warned on Friday that it will be "really hard" to get the "inflation rate down" without causing a recession.
"If [the Fed] have to raise interest rates that much, it will cause a recession, no doubt," Rogoff told "Cavuto: Coast to Coast."
"I don't think they'll go that far. My best guess is they fall short. They raise interest rates to 3-3.5, and we're left with a very soft economy and still inflation."
RED-HOT INFLATION IS PROBABLY COSTING YOU AN EXTRA $311 PER MONTH
Rogoff’s comments come on the heels of the Senate confirming Jerome Powell for a second Federal Reserve chair term, as policymakers attempt to handle record-high inflation.
If Fed raises interest rates significantly, will ‘no doubt’ cause recession: Harvard economist
Harvard University economics professor Kenneth Rogoff provides insight into how the Fed raising interest rates will impact inflation.
He stressed that once inflation "gets out of hand," it won’t be easy to "bring it back under control."
Meanwhile, the Harvard economist noted that multiple tumultuous events are impacting the U.S. economy, in addition to the fact that the Fed "let inflation get out of hand."