Gabriel Chodorow-Reich, Professor of Economics at Harvard University, is visiting scholar at the Federal Reserve Bank of Boston, and a member of the Academic Advisory Council of the Federal Reserve Bank of Dallas.
If the public comes to believe that the central bank will tolerate somewhat higher inflation for political ends, firms will start raising prices in advance. The result will just be higher inflation. Breaking this political-monetary cycle is a key reason why Congress created an independent central bank.
Gabriel Chodorow-Reich
January 15, 2026 at 3:11 PM IST
White House