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Economist reveals what it will take to put the brakes on the Fed
Economist reveals what it will take to ‘quiet the Fed’
FTN Financial Chief Economist Chris Low weighs in after the Federal Reserve raised its benchmark interest rate by 75 basis points for the second straight month.
FTN Financial Chief Economist Chris Low revealed Wednesday what he believes will "quiet the Fed" shortly after the central bank raised its benchmark interest rate by 75 basis points for the second straight month.
The move threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.
Low told "Making Money with Charles Payne" that he believes lower inflation data will prompt the Federal Reserve to put the brakes on the aggressive actions the central bank has been taking in an attempt to bring scorching-hot inflation under control.
The Labor Department revealed earlier this month that inflation accelerated more than expected to a new four-decade high in June as the price of everyday necessities remains painfully high, exacerbating a financial strain for millions of Americans.
FED RAISES INTEREST RATES BY 75 BASIS POINTS IN ANOTHER HISTORIC MOVE TO TACKLE INFLATION
The department said the consumer price index, a broad measure of the price for everyday goods, including gasoline, groceries and rent, rose 9.1% in June from a year ago. Prices jumped 1.3% in the one-month period from May. Those figures were both far higher than the 8.8% headline figure and 1% monthly gain forecast by Refinitiv economists.
The data marked the fastest pace of inflation since December 1981.
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Energy prices rose 7.5% in June from the previous month, and are up 41.6% from last year. Gasoline, on average, costs 59.9% more than it did one year ago and 11.2% more than it did in May.
Low said that he believes the next CPI report "will probably be benign."
"Gasoline prices are actually down 10% from where they were at their peak," he told Payne. "They peaked during the survey for the last CPI, so they’ll be down in this CPI."