Anatomy Of A Correction

A dovish faction has been forming within the Federal Reserve Board, dissenting from Chief Powell’s hawkish party line. Rather than wait and see whether tariffs deliver greater blows to the economic or the inflation outlook before changing monetary-policy course, the doves claim that the economy is more vulnerable and espouse lowering the federal funds rate sooner rather than later. Dr Ed sides with Powell & Co. So does the data: So far, there’s more evidence of tariff-induced inflationary pressures than economic weakness. ... Also: The recent stock market correction partly reflects late January’s revaluation of tech stocks in reaction to the Deep Six ramifications. Now investors may be embracing the Mag-7 once again. ... And: Dr Ed reviews “Companion” (+ +).