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Run it hot
Jerome Powell has had a change of heart. July 30th, he was saying that breakeven levels of employment are low and inflation is an issue. Two days ago, the FOMC Minutes said: “A majority of participants judged the upside risk to inflation as the greater of these two risks, while several participants viewed the two risks as roughly balanced, and a couple of participants considered downside risk to employment the more salient risk.” “Several participants noted concerns about elevated asset valuation pressures.” Today he decided that employment is actually totally the bigger concern and so inflation is fine. ... (full story)