On The Fed, The ECB& Growing Earnings

Fed officials presume that Trump 2.0’s tariffs will lead to one-time price increases. But should the Fed look through “transitory” inflation effects, or are they underweighting the risks of sustained inflationary pressure? … Melissa reports that Trump 2.0’s policies toward Europe have spurred fiscal measures there that take the European Central Bank off the hook for supporting the economy; no one expects the ECB to ease further anymore. … And: Joe reports that the S&P 500 companies should post “back-to-trend” y/y earnings growth this quarter.