@FlavellG@JohnLeePettim13 Ontario has been the problem from time immemorial...they blame Qubic and BC leftoid policies but Ontario (Elbozos' shithole) is Canada's major problem.
Core PCE a nothing burger. The Fed needs to cut 100 bps and get to r* right now.
As we head into Jackson Hole, the Fed’s incompetence will again be on display: endless rhetoric about “data dependence” and inflation vigilance, while policymakers ignore the most basic fact in monetary economics. A funds rate roughly 100 basis points above r* is an active choice to suppress demand.
The Fed does not need a recession, or even a 2% print, to begin moving policy from restrictive toward neutral. Underlying inflation is soft, real spending is weak, and the interest-rate-sensitive economy, from housing and commercial real estate to capital investment and big-ticket consumer purchases, needs rate cuts now.
Preserving such a large gap above neutral is not prudence. It is overtightening. The Fed’s unwillingness to recognize that elementary point is either political bias or plain incompetence. Pick one.