Questions raised about Fed's interest rate hikes to tackle inflation: report
LONDON, Oct. 17 (Xinhua) -- The latest U.S. inflation data released last week showed persistently high prices, raising more questions about whether the Federal Reserve's interest rate hikes are missing "the real inflationary culprits," British newspaper The Guardian has reported.
Experts pointed out the real inflationary culprits are "corporate pricing, energy costs and supply chain disruptions," said the report on Sunday.
The news is further stirring fears of unnecessary economic pain should the Fed push America into recession, said the report.
"Raising interest rates isn't working, and the Fed's overly aggressive actions are shoving our economy to the brink of a devastating recession," Rakeen Mabud, chief economist at Groundwork Collaborative, a think tank, was quoted as saying.
"Supply chain bottlenecks, a volatile global energy market and rampant corporate profiteering can't be solved by additional rate hikes," Mabud added.
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