What would it take for the Fed to abandon its hawkish stance?
Three things, suggested Fed Chair Powell’s recent Jackson Hole speech: core PCED inflation dropping closer to 2% y/y, demand for labor dropping closer to the supply of it, and consumer spending cooling off a bit.
All that can happen without a recession, as it has twice before in recent history, and the latest data on all three parameters suggest progress in the right direction.
Today, we review the data showing rebalancing of the labor market, slowing consumer spending, and moderating inflation.
Below is exclusive early access to Dr Ed's Webcast for paid members. This post and video will open to the public on a later date.
