The Federal Reserve won't fix the issue of US inflation by raising interest rates because it's burning at its fastest rates in decades, according to J oseph Stiglitz.
He said in an interview that raising interest rates was not going to solve the problem of inflation.
It isn't going to create more food. It will be more difficult because you won't be able to make the investments.
The Federal Reserve is expected to raise its rate by 50 basis points at its June policy meeting, according to the winner of the 2001 Nobel Prize in Economics. Since March, the Fed has raised interest rates by 75 basis points to tame inflation that has been burning at around 40-year highs.
The Columbia University professor said supply-side interventions would serve the world's largest economy.
One of the things that President Joe Biden tried to do was to have more care for children and that would mean more women in the labor force.
More than 1 million women have not been able to return to work because they cannot afford child care, according to Biden. Biden's legislative agenda that pushed for certain child care programs was put on hold by Congress.
He said that raising interest rates is not going to solve inflation.
He said that leaders should increase the production of food. He said that the US used to have food surpluses.
At least trying to do everything we can globally to increase the supply is going to do more in dealing with the problem than causing a depression.
The rate of inflation was 8.3% in April, easing from the 8.5% rate in March.
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