“The historical record cautions strongly against prematurely loosening policy. We will stay the course until the job is done,” but it’s not done, Powell said: Core services inflation ex-housing has not come down.
But for Treasury, the gravy train has ended: Fed released preliminary info on interest income, interest expense, other expenses, profit, and dividends.
“We’ve raised 425 basis points this year.” Now it’s “not so important how fast we go” but “what the ultimate level is,” and “how long we remain restrictive.”
