In 2021 many stories about inflation due to idiosyncratic factors like used cars. There was some truth to that. In 2024 many stories about idiosyncratic factors like insurance. Much less truth. The evidence: dropping all outliers lowered inflation a lot in 2021 but not now. pic.twitter.com/PvDJbif5HP

Fed Chair Powell summary today: 1) A rate hike is very unlikely 2) His base case is to cut rates later this year, but it’s not a given 3) No sign of stagflation 4) 3% inflation is not acceptable #Fed #economy pic.twitter.com/s6UwoWoSuz

“I don’t see the stag or the ‘flation” - Fed Chair Powell sees no signs of stagflation He expresses surprise people are talking about it right now with strong growth and inflation at 3% pic.twitter.com/KqqlZOwXFT

As a follow-up to yesterday's #FederalReserve press conference, here are some thoughts on why Chair Powell's surprisingly dovish tone and context may end up being appropriate...though not for the reasons he put forward. www.ft.com/content/aa8c68f7-9dad-465f-ab92-c64c38337a84 #economy @FT #markets #inflation