Inflation Is Still a Problem. Is the Fed Fighting the Wrong War?

Summary

This Wealthion compilation examines the debate over US inflation and Federal Reserve policy. It features contrasting views from Ed Yardeni, Barry Knapp, David Rosenberg, Michael Green, and Tom Lee on whether inflation remains problematic or is cooling. The guests discuss CPI and PCE measurement, rate-hike risk, disinflation, and lagged Fed frameworks, with no specific tradeable securities named.

• Headline CPI rose 3.4% year-over-year while core inflation eased to 2.4%, though the monthly core print was hotter than expected.
• Ed Yardeni warns that persistent 0.3%-0.4% monthly inflation could force the Fed to raise rates.
• Barry Knapp sees goods, services, and rent inflation cooling, supporting continued disinflation.
• David Rosenberg expects inflation to surprise to the downside as below-potential growth pressures aggregate prices.
• Michael Green questions whether core PCE distortions and lagged CPI formulas are misleading Fed policy.
• Tom Lee argues economists are fighting last year's wars on inflation.