Inflation Cools to 2.7% — Even With Money Printers Back On

"Powell says the tariff inflation is most likely to be, and I quote, a one-time price increase. So in other words, Paul is saying that the rate of inflation has been elevated in 2025 by tariffs, but he expects things to get better in 2026."

"Another thing is that the Federal Reserve is saying that they're confident that inflation is going to cool in the upcoming months and they're saying that inflation should not be a problem going forward."

"the Federal Reserve gave their projections and they projected that they're only going to cut interest rates one time in all of 2026. and just by 0.25%."

"J. Powell is going to be out of there in May of 2026. And Trump says that he's going to nominate the new Fed chair who's going to be Powell's replacements in the next few weeks. And that new Fed chair is going to be someone that believes in much lower interest rates."

"And that means that he would want to take it down to 2.75%."

"Hasset would be the candidate that would lower interest rates the most much more than Waller."

"However, it's going to be someone that lowers interest rates substantially, much more than Powell wants."

"And in my opinion, it's going to make the inflation situation worse. So, I'm just saying get ready for that in 2026."