Hikes Won't Cool Inflation, but the Fed Has No Other Choice
Wall Street’s economists have issued their predictions for 2022, and most expect to see slower U.S. growth and easing inflation this year. Cem Karsan disagrees. In a view that also differs from host Darius Dale, he believes fiscal stimulus will continue to give the U.S. economy a boost in the short term and that tighter monetary policy won’t lower inflation as quickly as the Fed hopes. Longer term, he’s bearish. The CIO of Kai Volatility Advisors says rate hikes will reduce liquidity, ultimately leading to an economic slowdown, but it will be a long time before consumer prices see a dip. Recorded on December 27, 2021.