Higher interest rates are 'corrosive on the economy,' economist says

The Federal Reserve has decided to keep interest rates steady as Wall Street speculates about the possible outcomes of a higher-for-longer environment. Moody’s Analytics Chief Economist Mark Zandi joins The Morning Brief to discuss the Fed's policies and why the central bank should begin cutting rates now.
Zandi explains that the Fed's 2% inflation target is inappropriate at this moment: "If you were asking me de novo today without the legacy of that 2%, I'd say it should be closer to three. Just given that the underlying growth rate of the economy is slower than when the 2% target was put into place, but I think the Fed officials want to get back to two, establish credibility, make sure that they've done what they said they were going to do."
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[@user-yy9hk9od9u]

It's also necessary to keep inflation down. His boss is telling him what to say.

[@thecommentjudgecharles1242]

There not cutting rates they don't care what breaks they have to see inflation going down before they cut rates. They hava a 2% target if by summer things don't improve you wont see a cut deal with it

[@takecontrol1000ify]

I think Fed should raise more interest rate to save the economic

[@quandingleberry445]

yep

[@markeh1971]

No. Inflation is being driven by input costs, mainly fuel prices going up and impacting upon everything. Reducing money in people’s pockets and spending is doing far more harm than realised. You won’t be able to help companies when they have closed. Take care all M

[@firstlast8258]

​@markeh1971 speak for yourself 🤓 🖕

[@invisiblesun6595]

Yeah, and low interest rates were just pretzels and beer for the economy 2008-2022, huh🙄

[@stiffdrinkfinance1981]

Higher rates is what is needed to balance consumption with production

[@darlayjones669]

In fact, the Fed should hike the rates 2-3 more times to really kill that inflation.

[@chuyenpham3336]

Hayyyy