Fed's Warsh Warned Not to Hike Interest Rates Amid Inflation Fears
New Federal Reserve boss Kevin Warsh is being urged to reconsider raising interest rates, as inflation fears grow amidst global economic uncertainty.
The recent white-hot global inflation surge of 2022 has central bankers spooked, with many thinking high oil prices and AI data center buildouts could boost inflation even further.
However, experts argue that these concerns are misplaced, pointing out that the huge 2022 inflation was not due to oil prices, but rather the massive increase in the money supply by central banks during the COVID pandemic.
Nobel laureate Milton Friedman's theory that 'inflation is always about too much money chasing too few goods and services' holds true, with the US M4 money supply growing 6.9% from a year ago in May - near the historical average of 5.6%.