Central Banks
Nobel Laureate Romer Says Fed Would Be ‘Crazy’ to Hike More
- Inflation, growth theory is ‘just not true right now,’ he says
- Fed should begin cutting rates ahead of reaching 2% target
Paul Romer.
Photographer: Michael Short/BloombergThis article is for subscribers only.
Nobel Laureate Paul Romer argued the Federal Reserve should start to cut interest rates after the US economy accelerated last quarter and inflation continues to slow.
“It’d be crazy to raise rates at this point,” Romer said Thursday on Bloomberg Television. “I think they should start cutting rates and explain to people — within a year we’re going to be at our 2% target — we need to sort of get ready to level off.”