From Yahoo Finance: 2025-03-29 07:30:00

Economist Craig Shapiro accuses the Federal Reserve of “gaslighting” the public, after Bank President Tom Barkin denies inflation de-anchored. Barkin admits U.S. economy experienced significant inflation. Shapiro criticizes Fed for trying to convince public inflation expectations are still anchored. Barkin warns of uncertainty-driven drop in sentiment affecting demand.

Barkin doubts Powell’s “transitory inflation” claim, warns against assuming one-time price increase. Central bank faces challenge as it predicts higher unemployment rate and 1.7% change in real GDP in 2025. Powell dismisses inflation concerns as temporary, complicating policy setting. Barkin likens situation to navigating dense fog with zero visibility.

Fed focuses on dual mandate of maximum employment and stable prices. Powell’s stance on inflation raises concerns as Fed projects higher unemployment and modest GDP growth. Barkin compares current economic state to navigating through thick fog with zero visibility. Challenges ahead for central bank in setting policy amidst uncertain economic conditions.



Read more at Yahoo Finance: Federal Reserve Is ‘Gaslighting The Public,’ Warns Expert As Richmond Fed President Says ‘Inflation Expectations Have Loosened, Not De-Anchored’