Add as a preferred source on GoogleJay Hatfield Urges Fed to Focus on Core Inflation in Rate Decisions
Hatfield says Fed policy primarily affects sectors sensitive to interest rates, especially housing, even when oil prices drive broader inflation.
In an Oct. 30 interview, Infrastructure Capital Advisors CEO and portfolio manager Jay Hatfield urged the Fed to prioritize core inflation in rate decisions, arguing against rate hikes in response to oil-driven inflation.
Hatfield said Fed policy primarily affects sectors sensitive to interest rates, especially housing. He argued that the Fed should account for that impact when deciding how to respond to broader price increases driven by oil.
He also called for fundamental changes to the Fed’s forecasting models and criticized its 2% inflation target as arbitrary. Hatfield described the inflation measure the Fed uses as seriously flawed.