Nobel Prize-winning economist, Joseph Stiglitz, has called on the Federal Reserve to implement a major interest rate cut. Stiglitz accuses the Fed of worsening inflation by tightening monetary policy too quickly and excessively.

What Happened: Stiglitz is advocating for a half-point interest rate cut at the Fed’s next meeting. This comes ahead of the release of U.S. jobs data, which is being closely monitored by investors to gauge the potential size of the expected rate cut this month, CNBC reported on Friday.

Stiglitz, a 2001 Nobel Prize laureate for his market analysis, joins other influential figures, such as JPMorgan’s chief U.S. economist, in calling for a significant rate cut this month.

While speaking at the annual Ambrosetti Forum in Italy, Stiglitz criticized the Fed for its aggressive monetary tightening. He argued that the central bank’s actions have put the economy at risk and likely exacerbated inflation, especially in the housing sector.

“I’ve been criticizing the Fed for going too far, too fast,” Stiglitz said.

See Also: Could August Jobs Numbers Keep Recession Fears At Bay? ‘This Time Is Different,’ Analyst Says

Stiglitz contends that the Fed’s current strategy for dealing with inflation is flawed. He believes a rate cut would help tackle inflation and job issues. However, not everyone concurs with Stiglitz’s call for a major reduction. George Lagarias, chief economist at Forvis Mazars, warns that a large rate cut could convey a sense of urgency and potentially trigger an economic panic.

Why It Matters: The debate around the Fed’s rate cut has been heating up. Earlier this month, JPMorgan cautioned that anticipated rate cuts may not significantly boost the stock market. Meanwhile, an August payroll report indicated that a 0.5% rate cut by the Federal Reserve wouldn’t be surprising after private payrolls fell short.

However, some experts have suggested that the Federal Reserve may pause rate cuts in response to potential supply side shocks.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari