The Federal Reserve has indicated that it would cut interest rates this year, but stubborn inflation is shifting expectations. The Union-Tribune's Econometer panel of economists and executives weighs in on whether cuts are still on the horizon.
Stubborn inflation might affect assumptions the Federal Reserve will cut interest rates this year. March's inflation report showed prices were still rising, and higher than expected, making the Fed's job more difficult. At the start of the year, some economic forecasts predicted six rate cuts, which has dropped to three or less in some cases. Some economists have even suggested a rate hike is coming.
Kelly Cunningham, San Diego Institute for Economic Research NO: The Fed should not cut rates but may still do so in a futile attempt to forestall inevitably intensifying economic turmoil. Persistent inflationary pressures remain with continual deficit spending, re-militarization of the world, restructuring of global trade, imposition of expensive green energy costs all compounding long-term inflation.
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