VIDEO: Data Doesn’t Support Big Action by Fed

Experts express concerns about aggressive rate hikes

Economists and market experts are expressing concerns about the Federal Reserve's aggressive interest rate hike path, arguing that the data does not support such a drastic approach.

In a recent video interview, former Treasury Secretary Larry Summers warned that the Fed's rapid rate hikes could lead to a "hard landing" for the economy, causing a sharp slowdown or even a recession.

Summers pointed to data showing that inflation is beginning to moderate and that the labor market remains strong.

Inflation may have peaked

Other experts agree that the Fed may be overreacting to inflation.

"The data suggests that inflation has peaked and is now on a downward trend," said Mark Zandi, chief economist at Moody's Analytics.

Zandi believes that the Fed should pause its rate hike campaign and assess the impact of the previous increases.

"The Fed's aggressive rate hikes are unnecessary and could do more harm than good," Zandi said.

If the Fed raises rates too quickly, it could trigger a recession by making it more expensive for businesses to invest and for consumers to borrow money.

Fed officials divided

The Fed is divided on the issue of rate hikes.

Some officials, including Fed Chair Jerome Powell, believe that the central bank needs to continue raising rates aggressively to bring inflation under control.

However, other officials are more cautious and believe that the Fed should pause its rate hikes to assess the impact of the previous increases.

The Fed is expected to make a decision on interest rates at its next meeting in March.

In the meantime, investors and businesses will be closely watching the data for signs of a slowdown in inflation.