Money, Markets & New Age Investing

S4 E3: FOMC - Master Magicians of Misdirection or Monetary Con Artists?

Greg Weldon Season 4 Episode 3

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0:00 | 32:05

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The US FOMC is playing the ole Shell Game with this past week's "SEP"!

Where is the Pea? (AKA US Consumer Final Demand Growth)

Shell One:  Inflation NO HIGHER than 3% this year, 2.5% in 2027, and 2.2% in 2028.

Shell Two:  Nominal GDP Growth of +5.2% in 2027.

Shell Three:  NO Change in Unemployment Rate 4.4%, same in 2027 and 2028 (but maybe on tick higher to 4.5%), either way reflects virtually NO impact from AI.

Wild Card:  Fed envisions a top-end Fed Funds Rate of FOUR PERCENT (3.9%) next year, based on growth in “real” GDP to 3% or higher!

There is NO PEA to be found…The Fed’s narrative is overly optimistic, an expert misdirection, yes. But one that flirts with the realm of being a “con”!

Either way…the Fed only wants, and needs, you to believe that the PEA IS THERE to be FOUND!

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