A&M economics expert: Don’t expect inflation rates to go down soon – KBTX

by | Apr 18, 2022 | Financial

BRYAN, Texas (KBTX) – Inflation in the U.S. rose 8.5% in March, the highest increase since 1981 according to the Labor Department’s Consumer Price Index. Dennis Jansen, Director of the Private Enterprise Research Center and the Jeff Montgomery Professor of Economics at Texas A&M University, joined First News at Four to discuss what people can expect from inflation in the near future.Don’t expect things to get better too soon. According to Jansen, “even if we’re at the peak, [inflation] is not going to go away quickly.”He believes the inflation rate will be significantly above the Federal Reserve Board’s 2% target for as long as the rest of the year.As for the government’s role, the Federal Reserve System is in charge of price stability and market stability. They are slowly raising the interest rate on reserves, but they’re doing so at what Jansen calls a “rather glacial pace.” The fed raised the interest rates on reserves a quarter of a percent in March, and they’re talking about raising it a half a percent at the next meeting in early May.Jansen believes the Fed should have “started raising interest rates and red …

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