Jay Hatfield: Fed Should Focus More on Core Inflation

According to Jin10, Jay Hatfield, CEO and portfolio manager at Infrastructure Capital Advisors, said the Federal Reserve should end its “irrational rate-hiking policy” and focus monetary policy on core inflation rather than inflation driven by oil prices. Hatfield said the Fed should recognize that its policies primarily affect interest-sensitive sectors, led by the housing market. He urged fundamental reforms to the Fed’s forecasting models, its arbitrarily set 2% inflation target, and the seriously flawed inflation measure it uses. Infrastructure Capital Advisors is closely monitoring research by Fed-related working groups and hopes the findings will address some of these fundamental shortcomings.