Marketplace · Thursday, July 9, 2026
Christina Beaumeister of Notre Dame argues that the Federal Reserve should proactively raise interest rates to anchor inflation expectations. She suggests that indecision regarding geopolitical conflicts risks a feedback loop where wage and price increases become persistently embedded, making monetary policy less effective.
“To prevent that inflationary cycle, Christina Beaumeister with Notre Dame says she thinks the Fed should be raising interest rates.”
“And in order to control inflation, you need to basically, uh, um, keep inflation expectations anchored.”
“And so it can just become embedded and cause, you know, a persistently higher inflation, uh, that becomes much more difficult to eliminate using monetary policy.”