American economist: The Federal Reserve (FED) has overly reduced interest rates, and the probability of the U.S. falling into stagflation is 65%.

According to a report by Golden Finance, Adam Posen, who has worked at The Federal Reserve (FED) and the Central Bank of the United Kingdom, stated in a speech this week, "We may fall into a recession, or we may not, but in any case, we will face inflation." Posen, who currently serves as the director of the Peterson Institute for International Economics, has considerable influence and believes the probability of a recession is 65%. Regarding the Federal Reserve, Bullard believes that considering the current still high level of inflation, it has over-lowered interest rates. Once prices begin to rise again, the Federal Reserve may not be able to keep up with the pace of change. As a result, the Federal Reserve may be forced to quickly and significantly raise interest rates, adding additional pressure on the economy. If all this becomes a reality, Bosen said, repairing the damage could take years or longer.