Uncertainty on war in Iran calls for Fed to keep rates steady, fmr. Dallas Fed Pres.

• The Fed is in a tough spot due to the 'fog of war' and conflicting mandates, calling for a pause in rate changes (neither hike nor cut).
• Productivity gains are a positive offset but not enough to counteract current inflationary pressures from tariffs, oil, and other inputs.
• The market may be 'over its skis' on the probability of an immediate rate hike, and the Fed needs to be a 'steady hand' amidst market volatility.
• Fed Chair Powell's stance on staying until investigations are resolved protects the institution's integrity and independence.

Former Dallas Fed President Richard Fisher discusses the Federal Reserve's challenging position amidst inflation concerns and geopolitical uncertainty. He advocates for the Fed to maintain a 'steady hand' by pausing interest rate changes, as current productivity gains are insufficient to fully offset inflationary pressures. Fisher also comments on Fed Chair Powell's commitment to protecting the institution's integrity during ongoing investigations.