DC’s Debt Trap

2023-12-14

For the last few years, Jerome Powell has remained constant: the Fed was ready to do anything necessary until inflation returned to its 2% target. 
Today, Powell blinked.
While the Federal Reserve’s own optimistic projections place their preferred inflation measures staying above two percent until 2026, Powell used the December meeting to unravel the equivalent of a Mission Accomplished banner on the fight against inflation, potentially with the same results that awaited George W. Bush in Iraq. Rate hikes are over, rate cuts — plural — may be on the horizon in 2024.
According to the Fed’s dot plot, three potential cuts was the most popular opinion of FOMC members going into next year, with five other members expecting even more aggressive easing. While the Fed’s projections for their