Bank of America: Fed Policymakers Will Lose Credibility If Inflation Does Not Slow
2026-07-22 13:16:29
According to Jin10, Joseph Lavorgna, chief U.S. economist at Sumitomo Mitsui Banking Corporation, said policymakers will lose hard-earned credibility if inflation does not slow. Lavorgna said in a report that over the past 70 years, there have been only six cases in which core inflation fell by 0.9% or more year on year, and in each case the slowdown came as the Federal Reserve was tightening policy. He also said the longer the Fed waits, the greater the chance interest rates will have to rise above necessary levels, and added that Fed Chair Kevin Warsh understands this.
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