Powell's latest speech feels like playing the 'inflation roller coaster' 🎢: slow decline, rising downside risks, and tariffs adding to the chaos, prices are likely to 'fly' for a while ✈️.
Although he stubbornly claims there will be two rate cuts this year, this script seems to suggest a delay. The Fed probably needs to first observe the 'time bomb' of tariffs 💣.
How it explodes will determine the pace of rate cuts. After all, no one wants to be caught off guard by inflation while trying to cut rates 😅.