Economy isn't seeing the kind of inflation the Fed could impact, says Wells Fargo's Tom Porcelli

• Porcelli believes the Fed should hold rates, as inflation drivers like tariffs and energy are supply shocks beyond the Fed's control.
• He highlights core CPI at 2.5% and 3-month annualized core CPI at 2.2%, suggesting inflation is largely on target.
• Porcelli dismisses the 'Dr. Copper' argument for rate hikes, stating that consumer durable goods spending has already slowed, indicating self-correction in the economy.

Tom Porcelli, Wells Fargo Chief Economist, argues that current inflation is primarily driven by supply shocks (tariffs, energy) which the Fed cannot effectively impact through rate hikes. He points to core inflation metrics being near the Fed's target on a 3-month annualized basis, suggesting further tightening is unnecessary and could harm growth. He also notes that consumer spending on durable goods has already self-corrected.