Steve Rattner, who served as an adviser to the Treasury secretary in the Obama administration, said on MSNBC’s “Morning Joe” on Friday that the Fed should raise interest rates to “5.6% and maybe more” to keep inflation at target levels. and “This is a hoax the Fed never did without a recession.”
“This is a very unusual time. We haven’t recovered from the epidemic. At a time when inflation is also very high, we don’t have as much savings in consumer balances as we have. The jump you see in stocks today is due to China having a really good night last night. I think it’s finally They are together. The question is whether we will act together. Inflation, as I said, affects consumers. Mortgage rates exceed 5%. The fuel prices you just reported have reached an all-time high. So I am on the more pessimistic end of the spectrum in terms of how I think the economy will work. I think inflation This will force the Fed to definitely bring interest rates back to 5.6% and maybe more, as Mika suggested, to bring inflation back to 2%. That’s a tactic the Fed never did without a recession. And as you said, you start to see consumers pull back. You start to see a pretty weak turnaround. The end of the world or a sudden I do not foresee a recession, but the road forward does not look good. ”
Source: Breitbart
