Former Deputy Secretary Pokender Evaluates Fed Rate Hike as a Mistake

Michael Pokender, former Deputy Assistant Secretary for Economic Policy at the U.S. Treasury, stated that inflationary pressures mainly stem from energy prices and that further rate hikes by the Federal Reserve are not the remedy needed for the economy. In a Fox Business interview on September 13, he mentioned that excluding energy-related oil products, the inflation rate is close to the Fed's target level, saying, "I believe it would be a mistake for the Fed to raise rates next week." Pokender explained that nearly all recent price changes have come from energy prices, emphasizing that the inflation rate is around 2% when excluding oil-related items like airfare, which aligns with the Fed's target. He assessed that the rate hike is interpreted not due to direct economic effects but as a signal that Kevin Warsh is someone willing to respond to inflation. Additionally, he pointed out that correcting fiscal imbalances is crucial to lowering long-term mortgage rates, stating, "The way to fight inflation is to show that we will not support debt arising from fiscal deficits with monetary policy." He expressed a negative stance on President Trump's $5,000 dividend proposal, arguing that the focus should be on expanding supply rather than one-time cash payments.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.