Stiglitz Says Fed Rate Hikes Killing Economy Won’t Fix Inflation

The US economy needs supply-side interventions rather than interest-rate hikes by the Federal Reserve that will fail to bring inflation under control, said Nobel laureate economist Joe Stiglitz.

“Raising interest rates is not going to solve the problem of inflation,” the Columbia University professor told Lisa Abramovicz and Tom Keene on Bloomberg Television at the World Economic Forum in Davos, Switzerland. “It’s not going to create more food. It’s going to make it more difficult because you aren’t going be able to make the investments.”