Quote:
Originally Posted by 2000cs
Remember last summer when he said inflation was transitory? Tried to jaw-bone it away. Same thing this summer, trying to jaw-bone it with expectations of higher rates. My guess is after Sept’s increase, there will be fewer but I don’t expect a decrease. Remember that the FED is still undoing QE.
In the near term both the IRA and the student loan forgiveness are inflationary. The resumptions of payments on remaining loans will be non-inflationary. So on balance not sure how the FED will handle those, but it might give them impetus for an extra 25bps.
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I know it's not supposed to work like this but I wonder if the FED gets pressure from the WH to be more positive...or at least not cut rates as much to give the market a boost this fall for elections.