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MNI INTERVIEW: Lagging Fed To Cut 100BP This Year- LaVorgna

(MNI) WASHINGTON

Central bank should already be cutting, says former White House economist LaVorgna, adding the delay threatens to derail a soft landing.

The Federal Reserve is likely to cut interest rates by one percentage point this year and officials should already be lowering rates given that inflation has fallen sharply and is set to continue declining, former White House economist Joseph LaVorgna told MNI.

“There’s nothing to suggest that inflation is going to go up, it’s going to go down and therefore I do think the Fed can cut rates,” said LaVorgna, who served as chief economist to the White House National Economic Council, in an interview. “I’m going to say 100 basis points this year.”

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The Federal Reserve is likely to cut interest rates by one percentage point this year and officials should already be lowering rates given that inflation has fallen sharply and is set to continue declining, former White House economist Joseph LaVorgna told MNI.

“There’s nothing to suggest that inflation is going to go up, it’s going to go down and therefore I do think the Fed can cut rates,” said LaVorgna, who served as chief economist to the White House National Economic Council, in an interview. “I’m going to say 100 basis points this year.”

Keep reading...Show less