โข
Disinflationary momentum is building, increasing the likelihood of rate cuts this year. Tariff risks and corporate pricing warnings persist.
By undershooting its inflation target after clearly stating it would not do so, the Fed risks surprising the publicโand perhaps triggering a recession.
โข
A low funds rate artificially inflated asset values for much of the past 30 years. Zombie industries are now addicted to cheap borrowing.
Energy costs prices pushed prices up, but the money supply is probably increasing as fast as it ought to.
โข
Tariffs pushed some prices up in April, but falling service costs and an uncertain outlook make the inflation picture much murkier.
โข
The Fed seems confident it can hold inflation near two percent, but the full impact of tariffs on prices and employment remains unknowable.
Both headline and core inflation are heading in the right direction. But the Fed shouldnโt overcorrect after a single month of falling prices.
โข
Marchโs tame inflation reading masks deeper trouble, as fading discretionary spending and looming tariff effects point to rougher economic terrain ahead.
Despite elevated inflation, there are reasons to think inflation may fall in the months ahead.
โข
Which states are prospering in these uncertain economic times, and which are losing people and tax revenue to neighbors?
โข
Disinflationary momentum is building, increasing the likelihood of rate cuts this year. Tariff risks and corporate pricing warnings persist.
By undershooting its inflation target after clearly stating it would not do so, the Fed risks surprising the publicโand perhaps triggering a recession.
โข
A low funds rate artificially inflated asset values for much of the past 30 years. Zombie industries are now addicted to cheap borrowing.
Energy costs prices pushed prices up, but the money supply is probably increasing as fast as it ought to.
โข
Tariffs pushed some prices up in April, but falling service costs and an uncertain outlook make the inflation picture much murkier.
โข
The Fed seems confident it can hold inflation near two percent, but the full impact of tariffs on prices and employment remains unknowable.
Both headline and core inflation are heading in the right direction. But the Fed shouldnโt overcorrect after a single month of falling prices.
โข
Marchโs tame inflation reading masks deeper trouble, as fading discretionary spending and looming tariff effects point to rougher economic terrain ahead.
Despite elevated inflation, there are reasons to think inflation may fall in the months ahead.
โข
Which states are prospering in these uncertain economic times, and which are losing people and tax revenue to neighbors?
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