Bloomberg Surveillance · Monday, September 28, 2026
Lindsay Piazza believes the Federal Reserve might need to increase the unemployment rate to bring inflation under control, acknowledging that this could be a consequence of slowing the economy. She suggests that current unemployment levels provide room for further rate hikes.
“I do think the Fed is going to have to slow the economy in order to get inflation under control. And part of the consequence of that is a slightly higher unemployment rate, or maybe even a notably higher unemployment rate from where we are. Right now, at near 4% unemployment, it's very clear that the Fed does have additional room to raise rates to a firmer point of policy and still keep us not only in that full employment range, but in order to break through that upper bound to slow growth, slow consumption, and get us back to a slower point of price growth.”