Jerome Powell speaks about policy as inflation indicators invite the Fed to continue its course (thanks to the summer cool down)
It appears that things cooled a little too much for some peoples’ comfort. Remember, the (inflating) vampire needs to be invited into your macro house. The 30yr Treasury yield has done that this summer as the Continuum drops and makes its right side shoulder.
You can go listen to the Fed Chief here or you can ignore his words and boil it down to something like this (if I may take the liberty of donning my tin hat and interpreting)…
“The decline in long-term Treasury yields combined with the rise in the Gold/Silver ratio and US dollar and the liquidity issue they might imply, have given us a little bit of pause about the inflation we created in 2020 with respect to its durability.
Hence, Delta Variant blah blah blah, full employment blah blah blah and policy goals blah blah blah. Were I to speak the truth I would tell you straight up that you are participating in a great inflationary adventure, and we still have upside headroom per some blogger’s crazy chart…”
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