Powell's Speech Tell Us The 1970's Style Slow Bleed is Officially Back

If, after you read this you want a little more, read Pozsar says:“Expect Five Years More Problematic inflation”. (it’s not long)

We swear.. it is all in that post….Which btw Noone else has written on that we’ve seen.

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PASSIVE QT MEANS PERSISTENT, BELOW RADAR INFLATION FOR YEARS

Stocks (up), the dollar (weaker) and Gold (strong) at first treated how Powell was talking with bullishness.. then maybe thought better of it and went back to unchanged when they realized he is telling us they will not be easing any time soon.. at time of this writing.. Gold is up small, the dollar is down small, and stocks are down small..

Nick Timiraos @NickTimiraos

Powell, paraphrased: Despite many people believing (or hoping) the Fed's recent inflation projections were too high because inflation would come down faster, the Fed didn't see it that way and, given last week's job report, still doesn't.

1. Fed is not actively selling debt back into the markets

2. Fed is letting a predetermined amount roll off and not get renewed monthly (passive QT)

This is not headline stuff.. but it is important