While other factors contributed to the low investment rates of earlier decades, it is not difficult to understand why high and volatile inflation can cripple capital formation. Uncertainty about future nominal returns makes a business more reluctant to commit capital, except for the more profitable projects.
For release on delivery 1:15 p.m. EST (12:15 p.m. CST) January 19, 2023  Staying the Course to Bring Inflation Down  Remarks by Lael Brainard Vice Chair Board of Governors of the Federal Reserve System at the University of Chicago Booth School of Business Chicago, Illinois  January 19, 2023  Inflation has declined in recent months, which is important for American households, businesses, and consumers.