Former Reagan economist Art Laffer warns against a Federal Reserve rate hike. Laffer tells Larry Kudlow that shrinking the Fed's balance sheet is the most effective way to lower expected inflation and stabilize interest rates.
Federal Reserve interest rates are under scrutiny as former Reagan economist Art Laffer advises against raising rates. Speaking with Larry Kudlow, Laffer argues that shrinking the monetary base and the Fed balance sheet is the best strategy to curb expected inflation. He highlights the recent rise in the 10-year Treasury yield from 4.5% to 5.0% as a key indicator of rising inflation expectations.
