'The Fed has been flying BLIND,' CEO warns

Core Viewpoint - The Federal Reserve is perceived to be lacking critical economic data due to the recent government shutdown, which raises concerns about its decision-making capabilities regarding interest rates [1][3]. Group 1: Economic Data and Fed's Awareness - The Fed has been criticized for being unaware of key economic indicators, such as the lack of real tariff inflation and the job creation figures under President Trump, which reportedly added 1.9 million jobs for native-born workers [2][3]. - The third quarter GDP is projected to be 4%, while the second quarter GDP was revised upwards to 3.8%, indicating a stronger economic performance than previously thought [2]. Group 2: Interest Rate Policy Debate - There is a division among Fed officials regarding interest rate cuts, with some advocating for more cuts while others caution against the risks involved [4]. - Fed President Mary Daly and Governor Steven Myron agree that current interest rates are too high and need to be lowered to support economic growth, contrasting with other board members who are more cautious [5][6]. Group 3: Impact of High Interest Rates - High interest rates are seen as detrimental to the economy, particularly affecting the housing market by limiting builders' access to loans, which in turn restricts new housing supply and contributes to inflation [8]. - Lowering interest rates is argued to potentially increase housing supply, lower home prices, and ultimately reduce inflation, benefiting the broader economy [8].