Correct me if I am wrong, but if we’re raising rates at historic levels and inflation (PCE) isn’t going down, wouldn’t pausing rate hikes result in inflation increasing?
I know we have a few more rate hikes to go but if sticky inflation continues into our final rate hike and subsequently, increases after, the fed would have to keep increasing rates.
It’s as if everyone is ignoring this and I’m not sure why. If inflation was slowly going down while rates went up, this would be a different discussion. But it isn’t. Its not budging on rates going up so what makes anyone think it will when we pause?
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