US Fed Should Act Soon and Decisively to Raise Rates: World Bank’s Reinhart

US Fed Should Act Soon and Decisively to Raise Rates: World Bank’s Reinhart
Carmen Reinhart, Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School attends the World Economic Forum (WEF) annual meeting in Davos, Switzerland, on Jan. 17, 2017. Ruben Sprich/Reuters
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WASHINGTON—The U.S. Federal Reserve should tighten monetary policy soon and decisively head off what could become “quite persistent” inflation, World Bank Chief Economist Carmen Reinhart told Reuters in an interview.

Reinhart, who has been warning for some time that supply chain shocks could result in sustained inflation in the United States and elsewhere, said any delay by the Fed on increasing interest rates would just prolong the problem.