MNI PODCAST: FedSpeak-Rates To Stay On Hold In 2024-Andolfatto

EXECUTIVE SUMMARY

• Former St. Louis Fed policy advisor Andolfatto sees inflation staying sticky due in part to a continuation of supportive fiscal policy, especially as new military challenges emerge.
• The Fed is unlikely to cut rates this year, he says, and while a rate hike is not the most likely scenario one can still not rule it out.
• “High inflation seems to have been defeated but the path to 2% seems a little bit more unlikely in my view,” he said. “I don’t think one should rule out the possibility that inflation comes in a little hotter and disappoints. Indeed it might, in some circumstances down the road, spike.”