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Discussion
I didn’t see Gundlach’s post-FOMC interview until this morning, but in it he touched on the key issues I pounded the table on in my post-FOMC review below.
Supercore inflation is nowhere close to confirming inflation is on a durable track back to 2%
Powell’s mention of the unemployment rate was notable
Despite batting away rate hike talk, the Fed will likely need to hike again to bring inflation back to 2%
I thought I was on a bit of an island with my analysis, and perhaps I still am, as evidenced by the universal Wall Street opinion that Powell was long term dovish (obviously the case can be made he was dovish in the presser); but Gundlach’s analysis is a breath of fresh air.