It makes 'ABSOLUTELY NO SENSE' for the Fed to do this, expert says

• Daniel Lacalle argues that the Federal Reserve should not hike interest rates in response to the current oil shock, as it is a temporary factor.
• He warns that raising rates would be 'exceedingly damaging' for the economy, especially for small and medium enterprises, and could trigger a credit crunch.
• Lacalle references the European Central Bank's 2008 rate hike during an oil spike, which preceded the Lehman Brothers collapse, as a historic policy blunder.
• He states that the Fed is 'not fulfilling its mandate' by potentially sacrificing job growth for inflation control driven by temporary energy prices.
• The only real risk of stagflation, according to Lacalle, would come from the Fed maintaining elevated rates combined with massive government spending and money printing.

Tressis Chief Economist Daniel Lacalle strongly criticizes the Federal Reserve's potential move to hike interest rates in response to the current oil shock, calling it 'absolutely no sense' and 'dumb.' He argues that such a move would damage the economy, particularly small and medium enterprises, and could lead to a credit crunch, citing the ECB's 2008 policy blunder as a cautionary tale. Lacalle believes the Fed is not fulfilling its dual mandate by prioritizing rate hikes over job growth.