The Fed ‘NEEDS' to change their view, ‘afraid' of lowering rates, economist says

Economic Outlook - The new Fed chief is focused on lowering interest rates to manage national debt, with $10 trillion needing to roll over in the next year [2][4] - Inflation indicators show gold and copper prices near all-time highs, while the dollar has fallen to a four-year low, suggesting inflation may be rising [2] Federal Reserve and Interest Rates - There is a belief that the Fed's long-standing view that economic growth causes inflation is incorrect, leading to current inflation issues [3] - Concerns are raised about the impact of rising interest rates on government payments, with mortgage rates doubling from 3.5% to 7% [4] Consumer Sentiment and Spending - Despite low consumer sentiment at a 12-year low, consumer spending remains strong, potentially influenced by media coverage [8] - The economic press may negatively affect consumer sentiment, creating a self-fulfilling prophecy [9] State Taxation and Migration - New York City is facing a fiscal crisis, with a proposed tax increase on the top 1% to address a $12 billion budget gap [10] - New York State saw only 1,080 new residents added last year, with a significant outflow of residents, indicating a trend of migration away from high-tax areas [11][12] Technological Change and Labor Markets - Concerns are raised about government intervention in response to AI disruptions in labor markets, emphasizing that disruption does not equate to destruction [16] - Historical context shows that technological advancements have led to increased productivity without resulting in mass unemployment, but the speed of change with AI is a new challenge [17][19]