Former Reserve Bank of India governor Raghuram Rajan has called for the US Federal Reserve to raise interest rates to contain accelerating inflation, arguing that financial conditions remain too loose and the American economy shows little sign of being constrained by borrowing costs.
“The Fed should be raising rates or should have raised rates already,” Rajan told Bloomberg Television’s Haslinda Amin in Jackson Hole, Wyoming, where he is attending the annual gathering of central bankers and senior policymakers. “I would be more hawkish than where the Fed is right now.”
