According to Arab Net and in an outpatient expectations of policymakers in Wall Street, Deutsche Bank issued a terrible warning that the focus on stimulation, with the exclusion of inflation concerns would prove that it is wrong if not in 2023 and beyond.
In particular, the analysis refers to the federal reserve and its new frame in which inflation will be held for full and comprehensive recovery. The Bank confirms that the Fed's intention does not tighten the policy until inflation shows a sustainable rise and will have serious effects.
The chief economist at Deutsche Bank, David Volkers Langer and others, will be the result of delays a greater disorder of economic and financial activity, which could be the case when federal reserve officials will eventually begin processing, and this can lead to a large recession and launch a series of financial crises All over the world, especially in emerging markets.
As part of its inflation, the Federal Reserve will not raise interest rates or limits the asset purchase program so as to see substantive additional progress towards its overall objectives. Many central bank officials said they were not near those goals, according to the CNBC network, and Arabic.
Meanwhile, indicators such as consumer prices and personal consumption prices are much higher than the inflation target of 2% at the Fed. Policy makers say the current rise in inflation is temporary and will be declined as soon as supplies and basic effects of the first months of the Corona virus crisis are fade.
While Deutsche Bank does not agree, saying the strong stimulus and core economic changes will provide inflation in the future, which will not be ready to face it.
It may take a longer year until 2023, but inflation will return to appear.
Volkers Lando said patience was due to the fact that the Fed's priorities turn towards social goals and neglect inflation leaves global economies standing on a timeless bomb. "The effects can be devastating, especially for the most vulnerable groups in society.
Most banks in Wall Street agrees with the Fed's view that current inflation pressure is temporary, and they complain that there will be no changes in politics soon.
In turn, a major economist at Goldman Sachs, Jean-Hatzius, said there were strong reasons to support this policy. One indicates that the end of enhanced unemployment benefits may lead to their jobs in the coming months, making wage pressures.
