The Federal Reserve may be forced to raise interest rates at an inopportune time as inflation picks up and the presidential elections loom in November, analyst Peter Boockvar said Thursday.
The Lindsey Group's chief market strategist noted that core inflation — which excludes volatile food and energy prices — rose 1.7 percent in January from a year ago. The read on consumer prices moves the Fed closer to its 2 percent target at a time when the economy still looks sluggish, Boockvar told CNBC's "Squawk Box."
"The Fed's now being painted into another corner," he said. "We're at their year-end target in terms of the PCE inflation number, and they've been hiding behind that as license to continue to ease, or at least not tighten."
The Fed's policymaking committee meets later this month to decide whether to hold interest rates steady or continue tightening monetary policy following its first rate hike in nearly a decade last December. The move ushered in the end to a historic period of easy money policy.