Navarro Slams Fed Rate Hike, Warns of Double Tap on Economy

Trade Adviser Peter Navarro criticized Federal Reserve Chair Kevin Warsh's decision to hike interest rates by 25 basis points to 3.75% to 4.00%. According to Navarro, this move is 'foolish' and will harm the economy.

Navarro pointed out that economists Alan Greenspan and Ben Bernanke did not raise rates during energy price shocks in the past. He compared Warsh's decision to a 'double-tap' on the economy, stating that an oil price shock already has contractionary effects, making it unnecessary to hike interest rates.

Nevarro emphasized that people are already paying more for fuel, leaving them with less money to spend. This makes the rate hike even more damaging, as it would effectively be two economic shocks at once.