To lower inflation back to 2%, the Federal Reserve needs to cut interest rates, not raise them.
That view runs counter to what many economists and the Fed think, with Fed Chairman Jerome Powell set to raise interest rates once again at the FOMC meeting later this month.
The Fed has hiked interest rates aggressively over the past 15 months, sending the fed funds rate from near 0% to in 2022 to just over 5% today.
Cutting interest rates to lower inflation isn't Ritholtz's only contrarian view on what the Fed should do.
"After the Great Financial Crisis, the economy was sluggish and zero interest rate policy/quantitative easing had driven rates near zero, 2% was a reasonable upside [inflation] target.
Persons:
Barry Ritholtz, Ritholtz, Jerome Powell, Rithotlz
Organizations:
Federal Reserve, Service, Ritholtz Wealth
Locations:
Wall, Silicon