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Treasury Secretary counselor says Fed rate cut is needed for the economy as worries continue about tariffs
The health of the US economy looks strong on paper, but Treasury counselor Joseph LaVorgna warns that high interest rates could become a headwind if the Fed does not act. “If monetary policy, by the Fed’s own admission, is working to restrict economic activity … interest rates cannot be a headwind to growth because we won’t meet our full potential in the labor market,” LaVorgna said on Yahoo Finance's Opening Bid. "The US economy does need some help on the interest rate side because the 3%-plus growth is great right now, but we're not going to sustain that." LaVorgna, who serves as counselor to Treasury ... (full story)
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Cleveland Federal Reserve President Beth Hammack on Monday said the U.S. central bank faces challenges as it attempts to balance fighting stubborn inflation or protecting jobs. “On the inflation side right now, I continue to be worried about where we are from an inflation perspective,” Hammack told CNBC’s “Squawk Box Europe.” “We have been missing our ...
Federal Reserve Bank of Cleveland President Beth Hammack estimated on Monday that inflation will not drop to the 2% target before the end of 2027 or early 2028, citing upside pressure, particularly in services, and uncertainty surrounding the impact of tariffs. Speaking to CNBC, she insisted that the Fed must maintain a restrictive monetary policy. Hammack ...
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