Economists have warned of inflation in Australia, the US and UK following a similar path of the 1970s and 1980s when falling prices came roaring back and stayed high.
| Federal Reserve chairman Jerome Powell has warned the central bank stood ready to raise interest rates further if needed because of a threat of inflation resurging and becoming entrenched in consumer expectations.
“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”Mr Powell went further in his speech to warn financial markets that the goal was also to convince consumers that inflation was going to stay lower.
“It is sobering to recall that the shape of the past decade’s inflation curve almost perfectly shadows its path from 1966 to 1976 before it accelerated in the late 1970s,” he also said.
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