Two prominent economists warn that the Federal Reserve reversing course now would be a 'disaster' for markets and the greater economy, as inflation may be higher than they think.
To cut or not to cut: that’s what the Federal Reserve will begin to debate at its highly-anticipated meeting on Tuesday. However, two economists have sent a warning notice to the central bank, cautioning they’re analyzing the wrong headline numbers. "I think inflation is higher than what people are saying," former Federal Reserve Bank of Kansas City President and CEO Thomas Hoenig said on "Mornings with Maria" Tuesday, ahead of the meeting.
So either the CPI is vastly understating inflation, or gold is telling us that there's a lot more inflation coming." After its last policy meeting in July, the Fed kept its benchmark federal funds rate steady at a 23-year-high range of 5.25% to 5.5% but opened the door to interest rate cuts if inflation continued to ease. Inflation data showed that price growth slowed to 2.
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