The Fed was too focused on the soft landing and has stuck the U.S. economy with higher prices, Stifel chief economist says

Federal Reserve Chair Jerome Powell (Credit: Chip Somodevilla)

Investors may be grousing at the highest interest rates in over two decades, but one economist says the Fed may not have raised rates enough—and we may be stuck with higher prices as a consequence.

When the central bank stopped raising interest rates in July 2023 it may not have led to sufficient tightening in the economy, which is why inflation hasn’t gone down to the Fed’s target levels, according to Stifel’s chief economist Lindsey Piegza.