Does the Federal Reserve foresee inflation, recession -- or the dreaded stagflation? John Silvia, chief economist at Wachovia, and John Ryding, chief economist at Bear Stearns, debated the rate cut question on "Morning Call."
Silvia told CNBC's Mark Haines that he sees a "strong possibility" of a rate cut. He acknowledged that Monday's inflation data underscored the "basic expectation" of the Fed "staying on hold" for the rest of 2007. But the Wachovia economist maintained that the "bias is toward lowering" rates.