At least one economist thinks yesterday’s Fed rate cut was a mistake. Even though the rate cut prompted a stock market rally, futures are looking iffy again, and some think that all this continued cutting will contribute to inflation. Oil prices were already cutting into some family budgets, and the Fed rate cut only serves to support those oil prices in the short term.

NPR reports on one economist’s view of yesterday’s Fed rate cut:

But economist Richard Yamarone of Argus Research believes the cuts in
interest rates are a mistake. He says the problem right now isn’t that
money is too expensive. Instead, Yamarone says the real problem is
widespread mortgage-market losses, which have hurt confidence in the
major banks and made people nervous about investing in the U.S. economy.