{"id":67061,"date":"2024-03-27T18:22:05","date_gmt":"2024-03-27T23:22:05","guid":{"rendered":"https:\/\/olduvai.ca\/?p=67061"},"modified":"2024-03-27T18:22:05","modified_gmt":"2024-03-27T23:22:05","slug":"the-feds-dovish-twist-only-surprising-on-the-surface","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=67061","title":{"rendered":"The Fed’s Dovish Twist – Only Surprising on the Surface"},"content":{"rendered":"
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The Fed’s Dovish Twist – Only Surprising on the Surface<\/a><\/h3>\n

Rate Cuts, Money Printer Go Brrr, and Biden<\/strong><\/p>\n<\/div>\n

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“The Federal Reserve is not only too big to fail, it’s too big to be held accountable.”<\/strong><\/em><\/p>\n

~ Thomas Massie<\/strong><\/em><\/p>\n<\/div>\n

Last week at its Federal Open Market Committee (FOMC) meeting, the Fed made it clear that it will go back to stoking inflation.<\/p>\n

Leaving the Fedspeak aside, here’s the gist: The Fed wants to cut interest rates three times this year, each time by 0.25%, with the goal of reaching a range between 4.55% to 4.75%.<\/p>\n

That’s the plan for 2024. But the Fed’s expectation is to lower them even further in 2025 and 2026.<\/p>\n

Now, this is quite a turn… and quite an odd one at that in terms of the timing. First, you’ve got the stock market recently hitting all-time highs. Gold and Bitcoin are also hovering near their all-time highs.<\/p>\n

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And hold on a second, isn’t the Fed supposed to be fighting inflation? Didn’t it come in pretty hot recently?<\/p>\n

It did.<\/p>\n

The PCE (or Personal Consumption Expenditures) \u2014 the Fed’s preferred gauge for measuring inflation \u2014 jumped by 0.4% in January, hitting its fastest pace in almost a year.<\/p>\n

The inflation report for December was not great either.<\/p>\n

Leaving aside the fact that the whole core PCE thing is a sham because it excludes food and energy (the two things Americans depend on the most), the Fed, being all “data-dependent,” is shrugging off the data it doesn\u2019t like.<\/p>\n

Alright, that’s pretty noteworthy on its own, but that wasn’t the only jaw-dropping news from the Fed last week.<\/p>\n

It came from Fed Chair Jerome Powell himself, who suggested that the central bank could ease quantitative tightening (QT) “fairly soon.”<\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The Fed’s Dovish Twist – Only Surprising on the Surface Rate Cuts, Money Printer Go Brrr, and Biden “The Federal Reserve is not only too big to fail, it’s too big to be held accountable.” ~ Thomas Massie Last week at its Federal Open Market Committee (FOMC) meeting, the Fed made it clear that it […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[34199,303,431,34198,534,3650],"class_list":["post-67061","post","type-post","status-publish","format-standard","hentry","category-economics","tag-doug-caseys-crisis-investing","tag-fed","tag-interest-rates","tag-lau-vegys","tag-monetary-policy","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67061"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67061\/revisions"}],"predecessor-version":[{"id":67062,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67061\/revisions\/67062"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}