Holtz-Eakin Says No Rate Hike Would Undercut Fed Credibility

Douglas Holtz-Eakin, President of the American Action Forum and former Director of the Congressional Budget Office, says the Federal Reserve should raise interest rates this week and warns that failing to do so would undercut its credibility as inflation remains its central challenge. He also calls President Donald Trump’s proposed $5,000 dividend checks an “unthinkably large” stimulus that could force the Fed’s hand, arguing that Washington has shown little fiscal discipline as borrowing costs rise and the government moves closer to borrowing simply to cover interest on previous debt. He speaks with Kailey Leinz on Bloomberg’s “Balance of Power.” (Source: Bloomberg)