The Fed Effective Funds Rate (4.83%) is technically now above Core PCE which came in at 4.6%. PCE is the Fed's preferred measure of inflation, per Charlie Bilello
@unusual_whales A quick summary of PCE if anyone needs it!
@unusual_whales A quick summary of PCE if anyone needs it!
@unusual_whales Gas station jerky is 50 dollars for the family pack! It used to be 15, tell me again inflation is transitory!
@unusual_whales And they anticipate inflation coming all the way down to 3.25% by year end and no cuts
@unusual_whales Good if you want to stabilize the inflation on this level but FED needs to hike a bit more to knock inflation more down. You don't want to end up with sticky high inflation which will break economy. Imho we will not avoid crash, but lower inflation will allow print.
@unusual_whales In order to combat inflation, the terminal interest rate needs to be at least 2% higher than the inflation rate.which means the Fed need to hike the rates at least to 6.6%
@unusual_whales What the fak does that mean who’s FAKT Bools or beers
@unusual_whales It would seen doing QT and QE at same time is possible
@unusual_whales Great. Now let's hope it doesn't take 6 years for both to decrease.