Li Xunlei: The effect of the Fed's rate hikes may not be good; inflation is easy to push up but hard to bring down.

Li Xunlei, chief economist at Zhongtai International, said at the Tsinghua PBCSF Chief Economists Forum on September 19 that the Fed's rate hikes may not be effective. In the past, U.S. economic growth was consumption-driven. Since last year, U.S. capital expenditure has increased substantially, and the country has begun to focus on investment, mainly in artificial intelligence and other electronic semiconductor industries. Such industries are not sensitive to prices and have high corporate gross margins. Under these circumstances, the policy effect of Fed rate hikes on controlling inflation may not be good, and inflation is more likely to rise than fall.