Federal Reserve fighting inflation with a ‘limited set of tools,' says market expert

During an interview on "Mornings with Maria" market expert Mark Avallone weighed in on  inflation, saying the Federal Reserve is fighting inflation with a "limited set of tools."

PEAK INFLATION MAY BE UPON US: MARKET EXPERT

MARK AVALLONE: The challenge for the Fed is even if they go 50 or 75, or multiple hikes, they don't control supply chain disruptions. They can't make the Biden administration drill for more oil, a lot more oil production in the country and they can't end the war in Ukraine… Those are the three drivers for inflation. So we're fighting inflation with tools that aren't designed to fight this round of inflation. Sure, to some extent, the Fed can raise rates that may slow this fever for housing that could pull back commodity-related prices to the housing market. So you could see them have some effect. But as we see today with the oil markets, there's problems with Libyan oil supply. We're cutting off Russian oil supply. The Fed has nothing to do with things like that, so they're fighting inflation with only a limited set of tools. And that's the concern that inflation gets out of control, while the Fed tightens money supply and slows the economy down. Worst case is slowing economy and inflation continues, and that's the one outcome we don't want.

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WATCH THE FULL INTERVIEW HERE: