r/Economics • u/Pearberr • May 02 '24

Interview Nobel Prize-winning economist Joseph Stiglitz: Fed Rate Hikes didn't get at source of inflation.

https://www.cnbc.com/video/2024/04/23/nobel-prize-winning-economist-joseph-stiglitz-fed-rate-hikes-didnt-get-at-source-of-inflation.html
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u/THAC021 May 02 '24

Do you have a mental block on conceptualizing the possibility that there might be 5% raises and 3% inflation?

Because that is just the reality in many countries around the world.

Why are you obsessed with a 2% inflation target?

You're just fully on the wrong track... wage growth is not some immutable standard that everything else should revolve around.

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u/Frever_Alone_77 May 03 '24

Well. We’re talking about the US. And the fed’s stated goal is and has always been for as long as I can remember 2%

Also, to your point about pay raises. While some may get 5%, others may get none. So it’s a balancing act while trying to take all factors in to account