As is well known, corporate bond markets work well for large corporations while they are not attractive to SMEs, which remain largely dependent on bank loans for financing. Efforts should be undertaken to reverse this trend and promote the access of SMEs to capital markets.
Last June, U.S. inflation hit a peak of 7 percent as measured by the 12-month change in the personal consumption expenditures (PCE) index. In response, the Federal Reserve has been using its monetary policy tools to restore price stability by bringing demand into line with still-constrained supply.