US risks slipping back into secular stagnation, says Rajan
Fed has “good chance” of defeating inflation but US economy has deeper problems, economist says
The US is likely to bring inflation under control over the next two years but might find itself mired in the same stagnation as before Covid-19, Raghuram Rajan said today (July 6).
The former Reserve Bank of India governor said he believed the Federal Reserve had a “fairly good chance” of bringing US inflation back down to its target over the next two years. The US has relatively low rates of unionisation, which will likely help prevent a wage-price spiral developing, Rajan told a conference
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