Post-Christmas interview on December 27th, 2023 where I was asked to share my thoughts on inflation and how that will effect Fed decisions.
Let me just cut to the chase. The Fed will not lower rates until they destroy inflation. This is not about economic numbers, it’s about ego. Until we see something close to 2% core inflation for 3-6 months, it’s unclear to me why the Fed would cut and run.
Yes, I get into the whole Arthur Burns versus Paul Volker thing. Enjoy!