The Fed is going to make inflation worse with rate-cut promises, former central banker says
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Former Federal Reserve governor Kevin Warsh warns that the Federal Reserve's promises to cut interest rates later this year could worsen inflation. Warsh points out that the stock market is booming and financial conditions may already be loosening, which spells trouble for consumers. The premonition of rate cuts has the effect of loosening financial conditions and could reignite inflation. Some Wall Street forecasters see a resurgence of inflation before it heads back to the Fed's 2% target. Consumer prices unexpectedly accelerated in February, increasing 3.2% year-over-year. Investors are currently pricing in a 71% chance of the Fed slashing interest rates by 75 basis points or more by December.

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https://www.businessinsider.com/fed-rate-cuts-inflation-outlook-us-economy-growth-monetary-policy-2024-3