How does the Fed undo its latest mistake? Azoria's James Fishback on Powell's moves and the election

The Federal Reserve got ahead of itself earlier this year thinking it had inflation whipped, said James Fishback, co-founder and chief investment officer at Azoria. Fishback spoke to Kitco on Tuesday. Back in December, the market was expecting more rate cuts than it will get this year. Fishback said the Fed and Chair Jerome Powell erred when it had its "mission accomplished December Fed meeting" and the markets priced in several rate cuts in 2024. Hotter-than-expected inflation data squashed lowering interest rates. "The Fed is thinking about undoing its latest mistake," said Fishback. "Right now, Powell is on the precipice of potentially making another mistake: does he want to pull back rates prematurely and then risk reigniting that crippling inflation that we saw in '21 and '22?"An additional complication is the U.S. election, which gives the Fed limited maneuverability, noted Fishback. He also discussed the promise of AI and how it could drive economic growth and help metals. Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.