Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why The Fed's Rate Hikes Are Sticking
With the Federal Reserve Funds rate holding at three point seven five percent and core PCE inflation ticking up to one point two percent year-over-year, the narrative of a soft landing is getting complicated. We look at why borrowing costs are refusing to follow the curve down, how the trade deficit hitting one hundred five point six billion dollars signals external pressure, and what the recent IMF warnings on AI mean for productivity-driven deflation. Is the economy stuck in a higher-for-longer equilibrium, or are we missing a structural shift in how capital flows through the system today?…
The skinny
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