by John Carney
Breitbart.com
As the Federal Reserve prepares to decide on another interest rate cut this week, people close to President-elect Donald Trump’s economic team are urging caution, warning that inflation risks may be underestimated even as price growth has moderated in recent months.
“Powell had better be careful with these rate cuts,” said a person familiar with the team’s thinking. “Bidenflation may not be dead.”
The concerns reflect unease about a series of factors that suggest the economy remains strong, with persistent inflationary pressures that could complicate the Fed’s efforts to balance growth and price stability. A key point of concern is that underlying inflation remains elevated. Core services inflation, excluding shelter—a metric often cited by Fed officials, including chairman Jerome Powell, as a proxy for entrenched price pressures—stood at 4.2 percent in November.