News about the Fed

The @wsj is right on this: “Even if the Fed cuts, the days of ultralow rates are over.” Also, we are yet to deal fully with the consequences of the over-indebtedness and resource misallocations encouraged by the protracted period of ultra-loose monetary policy. #economy… pic.twitter.com/9USXW1q8om

From the Bloomberg article, “Fed Rate-Cut Debate Shifts From When Toward If on Inflation Data:” Fed Chair “Powell has kept the committee united in its rate path, with no dissents in nearly two years, but there are some signs of strains. Until recently, Powell had sounded dovish… pic.twitter.com/1wbDAzrrtx

Core PCE inflation over the last 3 months was a 4.4% annual rate. That is higher than any time from Nov 1990 to Mar 2021. Yes, there were special factors, seasonal issues, etc. But there were also special factors & seasonal issues at various times in those previous 30 years.

Core PCE inflation, annualized rates: 1 month: 3.9% 3 months: 4.4% 6 months: 3.0% 12 months: 2.8% pic.twitter.com/fnoRWNhW6W