The End of the Fed’s Independence

Important Updates on Recent Views

The Powell saga is a distraction. The Fed’s independence has been gone for a while.

To be fair, what did people expect?

Inflation is still elevated while debt service is already at unsustainable levels.

You either crush the system with high rates, or you tolerate inflation and force rates lower.

This isn’t a debate. It’s math.

Meanwhile, in almost perfect timing:

Long term inflation expectations just jumped to two year highs today.