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Nobel Laureate Paul Romer argues for interest rate cuts by the Federal Reserve as the US economy accelerates and inflation slows. The economy's revved up activity and cooler inflation have sparked a debate on how closely the central bank should follow its traditional models. The Fed is resistant to cutting rates due to fears of inflation returning in a tight labor market and economy. The Fed aims to tighten financial conditions to tame inflation, but has not yet impacted corporate America significantly.
To have a shot at taming inflation, the Fed is intent on tightening financial conditions across the economy. But they haven’t made much of a dent in corporate America yet. https://t.co/z2Qb29N7jH
Heard on the Street: For Federal Reserve policy makers, maintaining a tightening bias makes sense https://t.co/xCFIpR1GNk
"The Fed is going to be resistant to cut rates as long as the labor market remains tight simply because they would be afraid that inflation could come back if they ease policy into a tight labor market and a tight economy," NewEdge Wealth CIO @CameronDawson says. @Nasdaq https://t.co/fjD7mtWtUw
The economy is doing two things that Fed officials don’t think it can sustain much longer: revved up activity and cooler inflation. I wrote about how this has set off a debate about how closely the central bank should follow its traditional models https://t.co/U5hmkajZH4
Nobel Laureate Paul Romer argued the Federal Reserve should start to cut interest rates after the US economy accelerated last quarter and inflation continues to slow. https://t.co/NoHblaR8VF