A U.S. Federal Reserve divided over how to respond to fast-rising prices meets this week with the fresh complication of increased coronavirus infections and a global supply chain that, far from sorting out its problems, may be headed for more inflation-inducing trouble.
Fed officials are likely to affirm after their two-day meeting that a strong U.S. recovery and their planning for an eventual policy shift both remain under way. But the new risks, threatening the twin ills of slowed growth and higher prices, mean the rosy future seen in June seems less assured.
Debate over how to shape post-pandemic monetary policy has just begun, and decisions were not expected before the fall.
Reference: The Global and Mail
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