Prof G Markets · Thursday, September 3, 2026
An investment expert suggests that Federal Reserve rate hikes may not effectively address current inflation, as the problem is rooted in supply-side issues like geopolitical conflicts and supply chain disruptions. He argues that raising rates is unlikely to fix these underlying causes.
“The challenge for, uh, investors and for the Fed is raising rates won't necessarily fix the stray-to-four moves. It doesn't necessarily fix the supply chains in China.”
“So, you know, it's plausible, uh, for sure, that they could raise rates. But my expectation would be that it's going to be a tough outcome for them because I don't think that's actually going to fix the problem.”