The Economic Times

Raghuram Rajan calls for Federal Reserve rate hike, says US economy 'not being held back'

Former RBI governor Raghuram Rajan advocates for higher US Federal Reserve interest rates. He believes current financial conditions remain too loose for controlling inflation. Rajan points to strong investment and fiscal deficits as growth drivers. The US economy shows little sign of being constrained by borrowing costs. Meanwhile, the Indian rupee has shown unexpected resilience recently.