This Fed move is a ‘COMPLETE MISTAKE,' argues Fed Reserve governor

Group 1 - The Federal Reserve's current policy is criticized for being overly restrictive and backward-looking, with calls for at least a 25 basis point rate cut in the upcoming December meeting [2][4][30] - Recent inflation data has shown improvement, particularly in shelter inflation, which is expected to align more closely with market rents, indicating a dovish stance should be adopted [5][11][12] - There is a concern that the Fed is relying on outdated data, which may lead to delayed policy responses, potentially causing the Fed to fall behind economic changes [21][23][24] Group 2 - The Fed's focus on inflation is seen as myopic, with suggestions that it should also consider labor market conditions and wage growth when making policy decisions [19][20][22] - High-frequency data, such as freight shipments, suggests a different economic reality than what the Fed is currently acknowledging, indicating a need for more timely data analysis [12][20] - The relationship between Fed rate cuts and mortgage rates is emphasized, with expectations that rate cuts will lead to lower mortgage rates, impacting housing affordability [30][31] Group 3 - The discussion includes the potential impact of immigration on inflation, with the argument that increased immigration without sufficient housing supply has contributed to rising rents and inflation [36][37] - The Fed's mandate focuses on stable prices and maximum employment, which may not align with external pressures such as gold and cryptocurrency markets [34][35] - The overall sentiment is that the Fed needs to adapt its approach to better reflect current economic conditions and avoid being reactive rather than proactive [22][24][27]