CEO of Key Advisors Wealth Management Eddie Ghabour on Wednesday said it was a mistake for President Joe Biden’s administration to say inflation would fall, and he predicted inflation will ramp up again.

The consumer price index (CPI), a broad measure of the price of everyday goods, increased 3.5% on an annual basis in March and 0.4% month-over-month, according to a Wednesday Bureau of Labor Statistics release. This was bound to occur and inflation will eventually accelerate again, despite the Biden administration’s insistence to the contrary, so the Federal Reserve will likely not reduce interest rates this spring, Ghabour asserted on Fox Business. (RELATED: We’re Now Spending More On Debt Interest Than Defense, Report Finds)

WATCH:

“We have been saying for months, this really is no surprise to us, that the Fed was not going to be in a position to cut rates. And today just confirms that,” Ghabour told host Stuart Varney. “So you want to be in areas that are going to do well in an inflationary environment. Everything our government is doing is inflationary, so it’s laughable to think that people thought this inflation’s going to drop like a rock.”

Biden administration officials repeatedly claimed inflation was “transitory” and has been optimistic about inflation coming down, even after Wednesday’s release, according to a statement by the White House.

The Fed is anticipated to announce its next rate decision on May 1, with investors nearly unanimously projecting the Fed will not reduce interest rates, according to the FedWatch tool from the CME Group.

“Now, look, I will stress this. I think the Fed is still going to cut rates this summer even though they shouldn’t, and that’s probably going to be bullish for equities,” Ghabour added. “But as we have stressed, this inflation is going to reaccelerate towards the end of this year. We’re going to look at a 10-year closer to 5, and you need to be able to know when to get out and the timing of that. It’s not today, but that’s coming down the road and you need to have a strategy for this.”

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