Dear Jerome Powell, Are You Sure the Fed Is in a Good Place?
That’s what Powell keeps saying.
Powell FOMC Statements
- The Fed is in a good place.
- Inflation expectations are well anchored.
- Services inflation heading lower.
- Refused 4 questions on the US dollar.
Wait until we see the impact of health care on services inflation. Then we can discuss point three.
That will be in just a few weeks.
And since oil appears to have bottomed, let’s see what happens at the pump and with energy prices.
Then in March and April huge tax refunds will do two things. The first is add to the deficit and the second is add to inflation.
Nonetheless, there were two dissents today in favor of rate cuts.
Silver
Copper
Dollar Collapse
Am I mistaken or do things look disorderly?
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No surprises.
January 27, 2026: Trump Cheers a Plunge of the US Dollar “I Think It’s Great”
“Look at all the business we are doing,” says Trump.
And for a look at what health care will do to the PCE price index, please see Expect a Big Divergence This Year Between CPI and PCE Inflation
Rent and Healthcare go different ways in 2026. Plus there are huge timing issues.