Inflation's Grip Tightens, the Fed Holds Steady

Patience Young Padawans the Fed Must Have

Hmm rate cuts not yet appropriate they are. Much evidence we need that inflation down it goes. Austan Goolsbee the Chicago Fed President spoke yes. Like the Force inflation's path unpredictable it is. "Front loading too many rate cuts is not prudent," he said. Wise words these are. Remember the past we must. Burned by assuming transitory inflation policymakers were. A mistake to repeat it we must not.

A Target 2 Percent It Is Not 3

Inflation above 2 percent still it is. Core inflation at 3 percent the Fed's gauge shows. Not good enough this is. "Stalling out at 3 percent is not a safe place to be," Goolsbee warns. Housing inflation stubbornly high it remains. Vigilant the Fed must be. Hmm a puzzle this is. Like unraveling a Sith plot patience and skill it requires. The wisdom needed here is high – the same wisdom to understand Databricks Defies Gravity: A $134 Billion Valuation and My Bollywood Take.

The Force Awakens... Market Expectations

The markets expecting rate cuts they are. June or July the timelines they foresee. But the Force strong with the Fed a data dependent approach they take. Remember "Always two there are no more no less. A master and an apprentice." Goolsbee a voter this year his voice matters. Like Obi Wan a measured approach he advocates.

Waller's Wary Wisdom

Christopher Waller also speaking he was. Lower rates he favors but cautious too he is. The labor market stronger it seems. Less need for cuts this implies. January data maybe just noise he suggests. Hmm like deciphering a cryptic message from the Jedi Council careful analysis it demands.

Pay Attention We Must

"People express that prices are one of their most pressing concerns," Goolsbee said. Hear them we must. Before stimulating the economy inflation back to 2 percent we must be sure it's heading. Like training a young Jedi the fundamentals we must master first.

A Jedi's Prudence The Fed's Guide

So patience young Padawans. The Fed cautious it is. Evidence it seeks. Premature actions avoided they must be. May the Force (and sound economic policy) be with us all. Remember "Do. Or do not. There is no try."