Fed's Long-Term Rate Focus May Worsen US Deficit: Steve Grasso

Steve Grasso, director of institutional sales at Grasso Global, has warned that the US Federal Reserve's focus on maintaining long-term interest rates could exacerbate the country's deficit situation.

According to Grasso, the Fed's goal of moderating long-term interest rates may lead to higher interest costs for the government, thereby accelerating the growth of the national debt.

The recent decline in Consumer Price Index (CPI), stagnant Personal Consumption Expenditures (PCE), and lackluster Producer Price Index (PPI) have reinforced Grasso's view that the Fed should consider cutting rates to alleviate the economic burden.