Where Is the Fed Victory?
Price level moves higher (CPI), personal savings rate (PSR) moves lower. Where is the Fed victory?
This talk of a soft landing is nonsense. Price levels exploded under Powell as he exponentially grew the money supply. What happens when price levels explode? The personal savings rate declines. The chart below shows how the change in the personal savings rate over the past year (measured at monthly intervals) as price levels continue to move higher. That’s what is lost on Wall Street. Who cares if CPI is growing at a slower rate - the damage is done as price levels seemingly move higher in perpetuity. For sure the economy is slowing as consumers have less savings.
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