Fed's next move is going to be to tighten, says Lindsey Group CEO

• Inflation is accelerating, with core PCE deflator showing 4.4% annualized over the last three months.
• The 'neutral' Fed funds rate is estimated to be between 4.2% and 4.7% (nominal), implying significant tightening is needed.
• The Fed's next move will be to tighten, either through rate hikes (suggesting 50 bps this year and 50 bps next) or quantitative tightening by shrinking the balance sheet.

Former Fed Governor Lawrence Lindsey discusses accelerating inflation, noting a 4.4% annualized core inflation over the last three months. He states the Fed's next move will be to tighten monetary policy, suggesting potential rate hikes of 50 basis points this year and next, or shrinking the Fed's balance sheet, to bring the Fed funds rate to a neutral level of 4.2-4.7%.