-
How Hard's US Economic Landing? Ask the Fed
So let’s freestyle this article a bit today because our brains are trying to connect a few dots. Inflation is falling, but hovering around 3-4%. It’s beginning to look like it’ll anchor near there, higher than the Fed’s 2% target. Here’s CPI . . .Overnight rates (i.e., the fed funds rate) though are running around 5.5%, but they “feel” much tighter at 6.7%.This “real” cost of capital is severely restricting economic momentum, which is why the market anticipates the Fed will be able to cut rates in a few more meetings. Historically though, when the Fed starts cutting rates, that’s when things start ... (full story)