From Nasdaq:

The Federal Reserve says that inflation is under control and the U.S. economy is doing well. Bluford Putnam, former chief economist at CME Group, believes that inflation numbers are not a cause for concern. However, the stock market has responded negatively to this data, with major indices lower in morning trade.

Putnam argues that CPI measures inflation inaccurately and that inflation would be at or below the Fed’s target if the CPI data were interpreted more accurately.

He also believes that higher interest rates are not concerning for the U.S. economy and will not cause a recession as long as people continue to have jobs.

Given Thursday’s higher-than-expected inflation data, the Fed is expected to keep interest rates higher. The Fed is in a difficult position having to unwind its past guidance, according to Putnam. Later in the month, the Fed’s favored measure of inflation will be published — personal consumption expenditures — which have dropped towards the Fed’s 2% target in recent months.



Read more: EXCLUSIVE: CPI Increase ‘Just A Hiccup,’ Says Former CME Economist: ‘Inflation Is Well Under Control’ (CORRECTED)