“Perhaps too much of everything is as bad as too little.”
In its quarterly Summary of Economic Projections (SEP), the Fed indicated that they may deliver three interest rate cuts this year as long as — In Powell’s words — “Inflation continues its “bumpy” trend towards the target (2%.)” Bumpy? That sounds generous at best and incredibly disingenuous at worst, especially given that Supercore inflation is rising at 5.8%. Most market participants believe that we’re on track for 3 rate cuts starting in June, thus the continuously impressive risk asset performance.
“Perhaps too much of everything is as bad as too little.” Read More »