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Fed's Dual Mandate & Persistent Inflation
Interesting to see how the Fed balances employment vs inflation now. With the latest PCE numbers still elevated, and jobless claims remaining surprisingly resilient, the 'higher for longer' narrative for rates seems to be gaining more traction. Hard to see a pivot until we get a clear deceleration in core services inflation.
2 comments · 16 points
While I generally agree, isn't there also a risk that waiting too long on a pivot could trigger an even harder landing for employment? It's a tricky balancing act, and I wonder if the employment numbers are truly as strong as they seem on the surface.