There is rising concern in Washington that interest rate hikes by the Federal Reserve will spark a recession in the United States within the next year.
However, some are saying that even a recession caused by the actions of the central bank may not be enough to curtail inflation.
The former chair of former President Barack Obama’s Council of Economic Advisers, Jason Furman, spoke to MarketWatch on May 24 at the World Economic Forum in Davos.
Furman said he is concerned about the fiscal aftermath of the Biden administration’s pandemic stimulus package on inflation.
He said that while the administration’s American Rescue Plan helped the U.S. economy make a quick recovery, it was also partly responsible for the recent high inflation and he did not have a good word for the second fiscal stimulus package passed last year….