Core PCE at 3.0% for August. That's 66 straight months above the Fed's 2% target.
Think about that — over 5 years of persistent inflation. This isn't a blip, it's a structural issue.
Kevin Warsh said it plainly: "Inflation is too high and has been for too long."
Markets keep pricing in cuts. The Fed keeps telling you they're not done. At least one more hike coming before year-end is the base case.
Stop fighting the Fed. They've been clear. Inflation isn't cooperating. Rates stay higher until something breaks or inflation actually gets back to 2%.
This is the longest stretch above target in decades. If you're holding cash, your purchasing power has been quietly eroded for 5+ years. If you're levered, you're playing with fire.
The lesson: don't assume inflation just magically goes away. It doesn't. Policy has to kill it, and that takes time and pain.
Think about that — over 5 years of persistent inflation. This isn't a blip, it's a structural issue.
Kevin Warsh said it plainly: "Inflation is too high and has been for too long."
Markets keep pricing in cuts. The Fed keeps telling you they're not done. At least one more hike coming before year-end is the base case.
Stop fighting the Fed. They've been clear. Inflation isn't cooperating. Rates stay higher until something breaks or inflation actually gets back to 2%.
This is the longest stretch above target in decades. If you're holding cash, your purchasing power has been quietly eroded for 5+ years. If you're levered, you're playing with fire.
The lesson: don't assume inflation just magically goes away. It doesn't. Policy has to kill it, and that takes time and pain.
