Richard Warr Predicts Aggressive Interest Rate Increases
Richard Warr, associate dean for faculty and research, explains how shocks in the supply chain have shifted from production to distribution. According to Warr, these shocks usually involve gas which has been heavily impacted by the ongoing conflict in Ukraine.
“Ukraine’s a big exporter of wheat and so we’re seeing some pressure in for example cereals and baked goods. We’re also seeing pressure in agriculture as well which are a big import into fertilizer and agricultural production,” said Warr. “The federal government has limited tools to affect inflation. The Federal Reserve is really where most of the action is at, and I think they’re going to be aggressively raising interest rates for the rest of the year.”
Read more on ABC 11.