Problem is, that kind of sugar high usually comes with a hangover. Of course, by the time it shows up, it’s someone else’s problem. New administration, new blame game. Same movie, different cast.
Powell sticking around doesn’t thrill Donald Trump, who hasn’t been subtle about wanting lower rates. He’s taken his fair share of shots, “Jerome Too Late Powell” being one of the more printable ones. All of this while inflation is sitting around 3.3% and creeping higher, thanks in part to energy costs finally making their way into the data.
In the FOMC comments, Powell flagged what most people paying attention already see: inflation pressure isn’t gone, notably with energy in the mix. The economy is still growing. But uncertainty is building, especially with geopolitical tension and supply issues.
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