The Fed’s Mission Hasn’t Been Accomplished

The Fed’s now ended tightening didn’t quite get inflation down to its mandated 2.0% target; but by easing now, the Fed presumes it will get there. It’s too early for victory laps, believe Ed and Eric. By overheating the economy, easing could jeopardize some of the inflation progress made. Today, Eric details the risks of that scenario and explains what he and Ed are watching for as they keep close eyes on inflation. … Also: Joe notes that the net earnings estimate revisions data he monitors jibe with YRI’s strong economic outlook. Although net estimate revisions are negative, the cutting isn’t as severe as usual.