The David Lin Report · Thursday, September 17, 2026
Professor Steve Hanke suggests that the Federal Reserve, under Chairman Warsh, will likely continue raising the Fed funds rate. He believes this will persist until the growth in the money supply decelerates to a level consistent with a 2% inflation target, specifically around 6% growth for Divisia M4.
“So I, I think given what we know now, I think they'll continue to increase the Fed funds rate until the growth in the money supply slows down to 6% and, and that rate is consistent with a 2% inflation target, using again, the quantity theory of money.”
“And it is much higher than Hanky's golden growth rate of 6%, a rate consistent with hitting an inflation target.”