Former Federal Reserve Vice Chairman Roger Ferguson joins ‘Squawk Box’ to discuss his take on latest inflation report, expectation from the Fed, and more.
@@peterdangelo5882 Well we have been in the same place for a while, nothing new here, we first hit 3% for 1 year inflation in July 2023, then went back up to 3.7% in September/October 2023, then down to 3.2% in November, 3.1% in December, back up to 3.4% in January then 3.1% in February and 3.5% in March.. It's such a tiny move for 1 year inflation data, keep in mind this number is for a 1 year going backwards. The FED goal of a perfectly healthy economy is 2.4% we are at 3.5% for 1 year of inflation, we shall see how this all plays out.
@@drscopeify Well, use the 1970 measure of inflation or the newer super core - inflation is well above 6 percent. We are not a neutral rate. No cuts this year.
@@peterdangelo5882 Well that measure is not great becasue it does not account for our new economic order which has us buying goods from a globalized world which means every time an Americans buys goods made in other countries.... the money they spent is leaving the country so we are always losing inflation out the window. Super core is ignorant of that new reality. However, as we pull away from China, make things in Mexico instead, that will raise inflation here in the long term as more money will come back in to the economy and that can be a problem. Higher rates long term which might be a good thing to keep asset/house prices in check.
very soon, talking heads will begin to suggest that the Fed should raise the inflation target to some level above 2%. Once the goalpost has been moved, they will then suggest interest rates are too high....
Roger has been subtly implying his pessimistic view on the course of the economy. The Fed is not supported by this Administrations policies. Radiating rates and pumping money into the economy only compounds problems.
