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Former IMF chief economist Kenneth Rogoff delivered a scathing assessment of the economy, saying in an interview with Mary in the Morning on Thursday that the US is in a productivity recession, that wages are worse than they look and the Fed’s strategy is not enough to contain inflation. markets have not fully grasped how much interest rates would rise.

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KENNET ROGOFF: i think they [Fed] we are going on a hike 75 but we will talk about a hike 1, that’s not what they’re going to do. I think the Fed will continue to move in the 4.5% range, maybe up to 5% at some point in 2023, and I don’t think that will necessarily be enough to bring inflation below 3.5% or 4 %. The Fed will face a difficult question. How long are they willing to weather the downturn?

LARRY KUDLOW: WAGES OF AVERAGE WORKERS REDUCED 3.4% OVER THE LAST YEAR DUE TO THE INFLATION DISTRESS

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How serious are they about the fact that inflation is the only thing they care about right now? But right now, that’s the only thing they care about. They are going to raise interest rates sharply. Inflation figures are terrible, and like I said, the payroll numbers are worse than they look. The value of firms is rising faster than wages due to changing working conditions.

WATCH THE FULL INTERVIEW HERE: