Former Central Banker Warns Fed's Rate-Cut Promises Could Worsen Inflation
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US markets continue to show confidence in the Federal Reserve's plan to deliver three interest rate cuts this year, despite higher-than-expected inflation in February . The consumer price index rose 3.2% last month, surpassing January's 3.1% increase. Core inflation, which excludes food and energy prices, also rose to 3.8% in February. Economists are now questioning whether the Fed can successfully engineer a soft landing by reducing inflation without harming economic growth and causing unemployment to rise. Pessimistic economists warn of a potential 'soft stagnation' if inflation persists, while optimists predict robust economic growth .
The Federal Reserve aims to reduce inflation to 2%, but this goal may prove challenging due to a strong job market, housing-related inflation, and highe...
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