Almost exactly one year ago, Jay Powell said:
“I don’t see the stag, nor the ‘flation.'”
Today, the Fed’s projections anticipate both.
This is a timely reminder that we’re still grappling with a rare trifecta of macro imbalances:
Inflation like the 1970s, government debt… pic.twitter.com/OKiiXDkyQp
— Otavio (Tavi) Costa (@TaviCosta) May 7, 2025
When Powell eventually decides to cut rates to stimulate the labor market, it won’t have the desired effect. All the Fed will stimulate is even higher inflation, which will move both rates even further away from its perceived mandates. Further cuts will make both problems worse.
— Peter Schiff (@PeterSchiff) May 7, 2025
In leaving interest rates unchanged the Fed admitted that “the risks to higher unemployment and higher inflation have risen.” It’s not just the risk that has risen. Higher unemployment and higher inflation are all but guaranteed. Both will rise much higher than the Fed believes.
— Peter Schiff (@PeterSchiff) May 7, 2025
Notice they leave out that the reason we get higher inflation is higher wages https://t.co/XcoZf10dea
— Darth Powell (@VladTheInflator) May 7, 2025
BREAKING: Interest payments on US debt declined by -$13.5 billion in Q1 2025, to an annualized $1.11 trillion, the lowest since Q2 2024.
This marks the first quarterly decline in interest payments since 2020.
However, interest expense on national debt is still TWICE as high as… pic.twitter.com/8iKH5UVN9k
— The Kobeissi Letter (@KobeissiLetter) May 7, 2025
Looks like debt is about to go up a lot pic.twitter.com/hDQh1mbXGY
— zerohedge (@zerohedge) May 7, 2025
