Mark Mobius warns Fed interest rates will hit 9% if inflation persists

If inflation is 8%, the playbook says you've got to raise rates higher than inflation, which means 9%, says the co-founder of Mobius Capital Partners

The Federal Reserve’s fight against inflation has veteran fund manager Mark Mobius warning that interest rates will soar to 9%.

“If inflation is 8%, the playbook says you’ve got to raise rates higher than inflation, which means 9%,” the co-founder of Mobius Capital Partners told Bloomberg TV on Monday. While policy makers may not hike so aggressively should consumer prices soften, the 86-year-old investor said he doesn’t see inflation receding “anytime soon.” 
 

The forecast is likely a reference of the Taylor Rule, a model which suggests an optimal policy rate by weighing price pressures and the labor market. The Fed is