Interesting situation for the Fed - right now financial conditions are way too loose and inflation is picking up. The Fed's own NFCI index shows -0.51, which historically describes pretty loose financial conditions, e.g. conditions are as loose as the NFCI level back in Feb. 2022. Respectively, due to the loose financial conditions, the core CPI inflation picked up significantly in the last three months and currently projects core CPI above 4% on annualized basis. To get to the Feds 2% target, the MoM increases need to be around 0.17%, not 0.30% or 0.40%, LOL. IMO, The only solution I see to handle the inflation is to raise rates again. Powell acted way too late and he didn't raise the rates enough and now we are in a way too loose environment with inflation raging up again.
they are destroying country with hordes of migrants do you really believe they will show any responsibility on monetary front? 4 rate cuts - S&P 6000 by elections