As consumer prices rise, some Americans panic that inflation will continue unabated. With its new interet rate policy, some are wondering if the Federal Reserve made a mistake. Justin Wolfers, professor of public policy and economics, has faith in the Fed, especially since overreacting to inflation could have detrimental costs.
"We don't have any deep level understanding of how to manage a pandemic economy. The usual textbook goes out the window," he said. "Anyone who tells you they are confident about anything right now is kidding themselves."