The Fed ‘CANNOT' raise interest rates into the supply shock inflation: Peter Navarro

• Inflation is primarily attributed to 'Iran terror inflation' and geopolitical supply shocks, such as the freezing of the Strait of Hormuz, rather than the previous administration's policies.
• The Federal Reserve 'absolutely should not and cannot' raise interest rates into a supply shock, as this would be stagflationary and detrimental to economic growth.
• Historical examples from 2006 (Bernanke) and the Kuwait oil crisis (Greenspan) are cited as instances where the Fed wisely avoided rate hikes during supply-side inflation.
• Current Fed Chair Jay Powell is heavily criticized for potentially making a 'moronic' decision by weighing rate hikes in the current environment.

Peter Navarro argues that current U.S. inflation, particularly gas prices, is 'Iran terror inflation' caused by geopolitical supply shocks, not domestic policies. He strongly criticizes the Federal Reserve's consideration of interest rate hikes into this supply shock, citing historical precedents where the Fed refrained from such actions during similar crises, warning of potential stagflation.