Fed should hold off on further rate hikes, says Moody's Analytics' Mark Zandi

• Fed should not raise interest rates further as inflation is driven by supply shocks, not demand.
• The U.S. economy is 'soft,' growing at 2% (barely potential), with slowing job creation and wage growth (below inflation for most).
• Raising rates risks pushing the economy below potential, leading to job losses, and disproportionately harming the bottom 80% of consumers.

Mark Zandi of Moody's Analytics argues that the Federal Reserve should halt interest rate hikes. He contends that current inflation is primarily due to supply shocks (war, energy, tariffs, immigration) rather than excessive demand, and that further tightening risks weakening an already soft U.S. economy, particularly the non-AI sectors and lower-income consumers.