Media Tip Sheet: U.S. Inflation Remains Persistent

September 15, 2022

U.S. inflation rose more than anticipated in August, raising concerns that another big interest rate hike is likely to come. One professor at the George Washington University says the Federal Reserve will clearly continue raising rates, but this may have more of an effect on financial markets before it hits the real economy.

Danny Leipziger

If you would like more context on this matter, please consider Danny Leipziger, Professor of Practice of International Business and managing director of The Growth Dialogue at GW. Leipziger’s areas of expertise include development economics, international economic policy, and macro and economic growth.

“The current concern about the inflation numbers is slightly overwrought since no one expected the Fed's actions to lead to an immediate cooling off. Markets are asking for miracles and that's not going to happen," Leipziger says.

“Since much of the inflation arose from supply side factors which then got imbedded in expectations, it may take a while to bring inflation down. The question, however, is how much of a hammer will it take to do so.”

If you would like to speak with Professor Leipziger, please contact GW Media Relations Specialist Cate Douglass at [email protected].