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U.S. inflation to improve as supply bottlenecks clear: Alan Blinder

Ex-Fed vice chair expects interest rates to top out at around 4.75% to 5%

Alan Blinder served on then-U.S. President Bill Clinton’s Council of Economic Advisers before becoming vice chairman of the Federal Reserve under Alan Greenspan.   © Reuters

WASHINGTON -- Easing supply chain bottlenecks and signs of a cooling economy point to an improving inflation outlook in the U.S., said Alan Blinder, a Princeton University economics professor and former Federal Reserve vice chairman, in a recent interview with Nikkei.

Given this, Blinder expects interest rates to top out slightly below the Fed's consensus projection, at around 4.75% to 5%. He sees "nearly zero" chance of a rate cut next year, except in the unlikely event of a "serious recession."

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