Warsh faces similar trap to the one that led to huge inflation in 2022
CEI senior economist Ryan Young is cited by the Washington Examiner on the inflation rate.
The problem for Warsh is that former Fed Chairman Jerome Powell faced a similar scenario as the pandemic waned, notoriously calling inflation “transitory,” and was slow to raise rates in 2021 and 2022. In retrospect, he has been panned for not acting fast enough to hike rates and prevent the worst inflation in decades.
“What’s happening now is similar, but on a smaller scale,” Ryan Young, senior economist at the Competitive Enterprise Institute, told the Washington Examiner.
The latest inflation numbers from the most closely watched inflation gauge, the consumer price index, once again came in hot in May.