Inflation: The Fed’s hawkish stance risks ‘overkill,’ economist says

As the U.S. continues its reckoning with inflation, the Federal Reserve has not backed down.

“Members of the [Federal Open Market Committee] are saying they’re just as hawkish as they’ve ever been, and they’re going to continue to raise interest rates continuously until they get that rate of inflation down to 2%, which I don’t think they can do,” Hugh Johnson Advisors CIO and Economist Hugh Johnson told Yahoo Finance Live (video above). “Nevertheless, they’re very intent on doing it.”

Minutes from the most recent Federal Open Market Committee (FOMC) meeting, revealed on Aug. 17, indicated that officials agreed “there was little evidence to date that inflation pressures were subsiding.”

“They judged that inflation would respond to monetary policy tightening and the associated moderation in economic activity with a delay and would likely stay uncomfortably high for some time,” the report stated.

Inflation currently sits at 8.5%, which is a decrease from June’s 40-year high of 9.1%. The…

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