Part 3/7:
As central banking discussions unfold, Kumar asserted that the Federal Reserve should be proactive about raising interest rates in its upcoming meetings. He cautioned that the Fed has failed in its dual mandate—maintaining price stability while fostering growth—primarily due to reluctance to impose what may have been necessary hikes in interest rates. This hesitation could lead to a stagnant economy with sluggish growth and persistent inflation—essentially the economic phenomenon known as stagflation.