Portfolio Manager Urges Fed to Cut Rates 5 Times in 2022, Citing Disconnect from Reality

Portfolio manager Paul Gambles argues that the Federal Reserve needs to cut interest rates at least five times in 2024 to prevent a recession and avoid a prolonged monetary tightening cycle. Gambles criticizes the Fed for being disconnected from economic factors and warns of the damage being caused to the economy. Federal Reserve Chairman Jerome Powell, however, stated that it is too early to declare victory over inflation and that policy will remain restrictive until inflation is solidly back to the central bank's target. Recent data shows easing price pressures, leading some to believe that the Fed is done raising rates. Veteran investor David Roche predicts that the next rate move will be down and that the embedded rate of inflation will be higher than before. The Fed's interest rate plans will be revealed at its next meeting on December 13.