Economist Urges Fed to Prioritize Economic Support Amid Cooling Inflation

According to BlockBeats, Renaissance Macro's Chief Economist Neil Dutta has highlighted that despite inflation remaining above the Federal Reserve's 2% target, the trend of cooling prices is evident. He suggests that the Federal Reserve should now focus entirely on supporting the weakening economy. Dutta notes that declining energy prices are expected to reduce gasoline costs, which will help curb inflation expectations. Additionally, he points out that there is an increase in labor market slack and a slowdown in rental housing inflation. "In short, inflation is no longer a concern. Policymakers should clearly state that maintaining economic growth should be the current priority."