Agbo-Blois notes, however, by the time the economic downturn begins, much will depend on the country’s inflation rate. If it is high, the Fed will have to tighten monetary policy. Since, to achieve an inflation rate of 2%, it is necessary to slow down the growth of consumer prices in the United States.
“If inflation remains above the target level or at least remains volatile, rates should remain higher for a longer period of time,” the agency quoted the expert as saying.
