The Fed holding rates high makes sense considering persistent wage growth, potential tariff shocks, and fragile CPI accuracy. Cutting too early risks reigniting inflation, especially with global debt concerns and geopolitical uncertainty. Markets aren’t just pricing current inflation—they’re hedging systemic risks and fiscal irresponsibility. Stability demands a cautious path, not premature easing. 4–5% rates might be the new normal.
Jerome Powell fronts up to Congress today, and Trump wants his goons to 'work him over good', not in the least sounding like a Hollywood movie version of a punk gangbanger. 'Work him over!' Early morning Trump rage urges Congress to lay into foe https://www.rawstory.com/jerome-powell-2672423714/