Moody's Chief Economist Mark Zandi says the risk of the Federal Reserve making a serious policy mistake is at an 'alarming high and continues to rise.' The market is almost certain that the Fed will raise interest rates by 25 basis points this week, but Zandi believes the U.S. economy's growth rate is already close to its potential level of around 2%, with unemployment slightly above 4%. Inflation exceeding 3% is largely driven by supply shocks like rising energy prices and tariffs, which rate hikes cannot directly address. Zandi points out that if the Fed tries to lower inflation faster by further tightening policy, it would have to push economic growth below its potential level, which would almost inevitably lead to layoffs and a higher unemployment rate. Zandi suggests that a more reasonable choice would be to continue waiting. https://(wublock123.com)/news/news-68426