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U.S. rate hike likely by next summer: former Fed governor

Elevated inflation won't ease in just 1 or 2 months, Kroszner predicts

The main things holding the U.S. economy back are supply constraints and low labor market participation, says former Federal Reserve governor Randall  Kroszner. (Photo courtesy of the University of Chicago Booth School of Business)

WASHINGTON -- Now that the U.S. Federal Reserve has announced a taper of its bond-buying program, attention turns even more to the timing of its first rate hike since 2018.

Fed policymakers on Wednesday decided to start winding down its pandemic-era stimulus, but they stopped short of hiking interest rates from near-zero levels, arguing that the current high inflation is expected to be "transitory."

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