Fed Meeting: The Return of Corporatism

This is Donald Trump's Economy now

Contents:

1. Fed Day Summary

2. Antigoldilocks checkpoint/ The Return of Corporatism

3. Powell Key quotes and translations

Fed Day Summary

1. Raised rates 25bps- expected

2. Will remain data dependent- expected

3. Nor volunteering guidance- interesting he would say this outloud but not crazy

4. We will hike more on an ad hoc basis- consistent with “no forward guidance”

5. inflation not near done yet- expected

6. No easing until basically 2025- telling the markets to stop getting hopeful for a pivot play

In combination with Pozsar’s latest analysis it seems they know inflation will be here as long as fiscal spending continues. While Powell will not admit it, the Feds job is to keep inflation down, not spur growth anymore