This top-heavy stock market might need an interest-rate hike, not a cut, says Nobel-winning economist

The two-day Fed meeting kicks off Tuesday and a rate cut, with a not-so-gentle nudging from the president, seems like a slam dunk at this point.Nobel-prize winning economist Robert Shiller isn’t so sure. In fact, he says hiking rates at this point could perhaps be the correct move.

“While the inflation rate is below the target, it’s not that much more below it. The target is 2% and the inflation rate is 1.5%,” Shiller told CNBC. “We just set a new record. We passed 3,000 on the S&P 500. We are at a really high market.” Shiller warned that a historic drop could be in the works. These days, he points out, stocks are even more expensive than they were in 1929.

Inflation is non-existent

Exactly. Stay the course.

When the economy is hot doesn’t interest rates go up? Who are you guys fooling.

Spoken like a Fat cat making lots of money and not giving a shit about real people making same as 10 years ago. 👎🏾thank you for all your wisdom

He's correct on the economy running hot. If without monetary and fiscal policies asset prices would be _deflating_, having 2% inflation is a lot of inflation then.

simple, because trump wants it

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cramer: Get ready to buy these stocks as the market awaits a rate cutYour job is to sit tight and find high-quality stocks to stick with for as long as the underlying business stays strong, Jim Cramer says. THIS is what bullshit faux markets look like. If the U.S economy is “BOOMING” as they portend, there would be no need for the fed to have been continuously spoon feeding them money since 2007 !!! Jus’ sayin’
Source: CNBC - 🏆 12. / 72 Read more »