In a recent analysis, renowned economist Peterson suggests the Federal Reserve’s measures won’t effectively address the current economic downturn. He highlights how historical data reveals that preceding recessions have seen the Leading Economic Index (LEI) decline by at least 5% or more before any recession declaration. Despite this trend, the Fed has yet to reduce interest rates, a sign that the economy may already be in recession, according to Peterson. He further argues that the inflation we are seeing is not due to demand but rather supply chain disruptions stemming from geopolitical events like Russia’s invasion of Ukraine. He believes high interest rates will only exacerbate existing problems by slowing growth, increasing unemployment, and suppressing consumer spending.