A Federal Reserve in Transition and Under Pressure
After what was likely Jerome Powell's last meeting as chair, Roger on inflation, stagflation risk and AI investment.
Roger wrote this the day after what was likely Jerome Powell's last rate meeting as Fed chair. He supports the decision to hold rates with inflation running above 3%.
He warns that the war with Iran could push the economy toward stagflation, and he counts heavy AI investment, and fears of an AI bubble, among the forces shaping the markets. He describes a job market that is low hire and low fire.
