The Fed needs to cut interest rates, not raise them, if it wants to tame inflation back to 2%, CIO says

• To lower inflation back to 2%, the Federal Reserve needs to cut interest rates, not raise them.
• That's according to Barry Ritholtz, who argued that rate hikes won't cure the current drivers behind rising prices.
• "Raising rates won't fix these issues and arguably, makes them worse," Ritholtz said.

If the Federal Reserve wants to get inflation back down to its long-term target of 2%, it needs to cut interest rates, not raise them, according to Ritholtz Wealth Management CIO Barry Ritholtz.

That view runs counter to what many economists and the Fed think, with Fed Chairman Jerome Powell set to raise interest rates once again at the FOMC meeting later this month.