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2026-09-16 12:22:08
[Most Economists Support Fed Rate Hike, Advocate Resisting White House Pressure to Focus on Inflation] 1. Several top economists believe the Federal Reserve should resist pressure from Trump and implement its first rate hike in over three years. They support Fed Chairman Warsh's position that central banks must prioritize curbing inflation. 2. A survey of 51 economists by the University of Chicago Booth School of Business showed that 50 believe borrowing costs should be raised from the current range of 3.5% to 3.75%. Most respondents supported a 25-basis-point rate hike, but 14% called for a 50-basis-point hike at once, citing concerns that the war between Trump and Tehran could trigger a surge in fuel prices, leading to a broader inflation crisis. 3. Olivier Coibion, a professor at the University of Texas at Austin, stated that the Fed is seriously behind the times on the issue of rate hikes. He pointed out that inflation has been consistently above target for years and shows no sign of falling back to the target; it may even be moving in the wrong direction, therefore policy should respond strongly.
