Bloomberg Surveillance · Friday, August 28, 2026
Richard Clarida explained that Fed Chair Kevin Warsh's statement that 'inflation is a choice' echoes Milton Friedman's view that inflation is a monetary phenomenon. Clarida elaborated that over time, a country's monetary policy ultimately determines its inflation rate, emphasizing the long-term nature of this relationship.
“A version of something Milton Friedman said a half century ago or more, which is, quote, inflation is everywhere and always a monetary phenomenon.”
“And so, you know, Kevin, I think Chairman Morse was channeling that idea that ultimately over some period of time, the rate of inflation in a country is determined by its monetary policy.”