The Fed Just Confirmed the Money Printing Pivot!

"My estimation is that it's going to be trillions of dollars in not so far future, probably 2026. So get ready for more inflation."

"And then they turn the money printers back on in 2026. And then inflation is going to come roaring back with a vengeance."

"And at that meeting in December, they're going to decide whether to cut interest rates again or not."

"So, Paul said that they're going to collect every scrap of data to make their decision, but the reporter, another reporter, they wanted clarity, and the question still stands like, is this going to affect your decision in December? So, please see how Paula responds. >> Hey there, Andrew Acriman with the with the Washington Post. Um, I wanted to ask if you could elaborate on how you think about policy in the context of the data drought. Um, does it make you inclined to stick with your plans as set out in September in the absence of the data that might change your mind or does it make you inclined to proceed with added caution because of uncertainty?"

"We're absolutely committed to returning inflation to 2%. If you look at longerterm surve surveys or market pricing, you will see that that that's a credible commitment. And there there should be no question that that's that that's where we're going."

"So the the basic expectation is that there will be some additional increase inflation because it takes a while for tariffs to work their way through the through the production chain and finally get to consumers. And we see this now from the from the tariffs that were put in place now many months ago. We see those effects. But if you put tariffs in effect and they've been coming into effect consistently in, you know, February, March, April, May, and that's all happening. So that'll continue to happen for some time, probably into the spring. These are not big increases, though. These are a tenth or so on inflation. They may be big increases on a particular product that's been tariffed. But overall, these are fairly modest. I think, you know, some projections go we're 2.8% inflation. You might get two or three more tents or four more tents maybe. But then as as all the tariffs are in, they stop generating inflation. You've had a one-time price increase."

"As a share of nominal GDP, our balance sheet has fallen from 35% to about 21%. In December, we'll enter the next phase of our normalization plans by holding the size of our balance sheet steady for a time while reserve balances continue to move gradually lower as other non-reserve liabilities such as currency keep growing."

"It'll take some time for that effect to wear off as real incomes rise it will feel better over time but that's going to take time"