Investors may be grousing at the highest interest rates in over two decades, but one economist says the Fed may not have raised rates enough—and we may be stuck with higher prices as a consequence.
When the central bank stopped raising interest rates in July 2023 it may not have led to sufficient tightening in the economy, which is why inflation hasn’t gone down to the Fed’s target levels, according to Stifel’s chief economist Lindsey Piegza.
“I do think, as we’ve long argued, the Fed with this hyper focus on achieving the soft landing stopped short of where we needed to be to ensure a return to price stability, not just sit on the sidelines and hope for it, but ensure return back to 2%,” Piegza told CNBC on Wednesday.
The Federal Reserve set out on its dual mandate to lower inflation, while maintaining full employment, after the U.S. economy struggled…
