Raising interest rates is the wrong solution to the inflation problem, analyst says

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Raising interest rates is the wrong solution to the inflation problem, analyst says
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Raising interest rates to tame demand isn't the right solution, as high prices have been driven mainly by supply chain shocks, one analyst said.

Gambles argued that the United States should instead look at a fiscal boost to fix inflation.

Both pandemic lockdowns, supply chain upheavals and the Russia-Ukraine war, as well as the stimuli governments pumped into their economies and loose monetary policies, have contributed to rising inflation, economists like King have said.

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