4min chapter

Forward Guidance cover image

The Fed Won't Get their Soft Landing | Jim Bianco

Forward Guidance

CHAPTER

The Fed's Priority in Inflation

Inflation is now the priority of the Federal Reserve. That's a world where at 20 percent drawdown in the stock market a 15 percent drawdown even a 10 percent drawdown is something to make the Fed chair get out of bed and maybe reverse course But you're saying in this new inflationary world the Powell put is has a much lower strike price Exactly right. You know if you want to put it in market terms is the strike price has been lowered And it's been lowered quite a bit. The question is why is inflation now the priority and not growth and I think it's about politics.

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