Today represents why we have been very careful to not get too cautious despite the possibility of a correction.  At today’s bi-annual report to the Senate, Fed Chair Powell clearly stated what we have been referring to as a generational change in how the Fed views inflation risk as being too low.  He said the current sustainably low inflation backdrop creates a very challenging environment for them to carry out their job.  He then reinforced the “very deep dive” they are doing into their policy framework.  In other words they are trying to figure out a way to get inflation higher.

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