Episode 44: The Fed is trying to mold and shape inflation

The Fed is trying to mold and shape inflation.Which then molds and shapes our interest rates.They have blunt tools. They have quantitative tightening. They can sell off their balance sheet that they have or let it run off and buy less mortgage-backed securities and treasuries. They can raise the Fed funds rate.The Fed has said they are going to be data-dependent. And that data is showing that things have rolled over.We might end up with maybe a 4.5% terminal rate, maybe as high as 5%.If we get more hot data reads coming out here and that's a really high rate. That rate that we just went up since March of this year, is the fastest ever.And there have been other times when these rates have been raised by the Fed and have broken things in our system.#KPTalks #moldinginflation #shapinginflation #quantitativetightening #Fedfundsrate #peakinflation #terminalrate #hotdatareads #higherrates