Chicago Fed President and voting member says we shouldn’t overreact to yesterday’s PPI inflation numbers, better to “wait for more data” to see a trend.
Sound familiar? It should. Powell’s been singing that same “wait for the data” tune for four years now. At some point, this isn’t patience, it’s Analysis Paralysis. And the enemy isn’t the inflation trend, it’s the endless waiting.
Same chorus from St. Louis Fed’s Musalem, Richmond Fed’s Barken, and the rest of the Fed echo chamber, don’t overreact, just “wait for more data.”
The clock is ticking on the Fed’s Achilles’ heel: stagflation, persistent high inflation with slowing employment. It’s the no-win scenario they hope you don’t talk about, because there’s no playbook that ends well.
More homes on the market but with rates still elevated, they are not moving as quickly as we thought.
Sorry for the Friday rant. Have a fantastic rest of your day and weekend.
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