BlockBeats News, March 27: President of the Federal Reserve Bank of St. Louis, James Bullard, stated that recent inflation may be higher than expected, and economic growth may be lower than expected. This situation has brought some challenges to monetary policy, as there may be a trade-off between the dual mandate. If inflation expectations start to rise, the Fed may need to pay more attention to its inflation target.
Stagflation is a more extreme situation than what the United States may experience in the coming months. It is not believed that an economic recession is imminent. It is expected that the inflation rate will fall back to 2% by 2027. (FXStreet)
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