šØ JAMES E. THORNE: REAL-TIME DATA EXPOSES THE FEDāS POLICY MISTAKE $SOMI
The FOMC meets today and Powell is unlikely to cut rates. But economist James E. Thorne says the Fed is making a critical error by $JTO relying on lagging data instead of real-time indicators.
Thorneās view is blunt:
āPowellās Fed is incompetent.
Where is the āinflation is permanentā narrative now?
Where is the tariff inflation? $JUP
The Fed Funds Rate should be closer to 2.75% today.ā
Key BLS and BEA inflation and labor data are delayed and backward-looking. By the time they confirm cooling, policy is already too tight. That means the Fed risks crushing growth while inflation is already rolling over.
Real-time data tells a different story.
According to Truflation, inflation cooled sharply in January, led by housing and multiple consumer categories. This suggests disinflation is happening faster than official reports show.
If the Fed ignores real-time price signals and stays restrictive, it could be repeating the same mistake: acting too late, but this time in the wrong direction.
#FederalReserve #Inflation #FOMC #MacroEconomics