It is “absolutely right” for the US Federal Reserve to focus more on the current banking collapse crisis than on inflation which has “already been slowing down”, says RBC Capital Markets’ Chief Economist Tom Porcelli.
His comments follow the Federal Reserve’s decision to lift interest rates to five per cent on Wednesday night.
“Inflation has been slowing down since September very consistently,” Mr Porcelli told Sky News Business Editor Ross Greenwood. “The banking crisis – this is new, in a lot of ways it’s unknowable what the impact will actually be. “So, I would actually argue that it’s absolutely right for the Fed to be focused more on the bank issues than on this massively lagging economic indicator known as inflation, which has already been slowing down.”
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