Investor and author Mitchell Feierstein told Newsmax on Thursday that the actions of the Federal Reserve over the last several years indicate the entity "has become extremely political," though their role in the economy should remain neutral.
The author of the book "Planet Ponzi" noted that the Federal Reserve lowered interests rates in September 2024, just prior to the presidential election, and they should consider "three rate cuts" by the end of 2025.
"And I don't think that they want to make rate cuts because the Fed has become extremely political, which I don't think they should be. They should stick to their two priorities of price stability and full employment," Feierstein said during an appearance on "Wake Up America."
Feierstein said while he expects a rate cut before June, he doesn't think the Fed wants to.
"I think that they cut rates for political reasons in September — 50 basis points — and they shouldn't have. I think that they should have waited until this year to cut rates, but I think that they're going to need to cut rates within the next couple of months," he added.
Feierstein, the CEO of the Glacier Environmental Fund, further opined that the market valuations of tech giants such as Microsoft and Facebook are far too high.
"What we're seeing right now in the valuations is absolutely bizarre. Consumer spending has been tapering off toward the end of last year. And I think that was one of the drivers that they tried to goose the Federal Reserve, tried to goose markets by cutting interest rates before the election to have an impact on that. But then, at the beginning of the year when Trump was elected, they said, Oh, we're not going to cut rates anymore. We're going to adopt a wait-and-see," Feierstein said.
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