Extraordinarily Bullish

Don't own bonds.

“I would rather have questions that can’t be answered than answers which can’t be questioned.”

attributed to Richard Feynman

Here comes the good deflation:

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A Small Victory

Via Grant’s:

“Good riddance to flexible average inflation targeting. The Federal Reserve is poised to scrap its 2020-era initiative to compensate for periods of insufficient inflation by permitting price pressures to exceed the 2% per-annum target in a reciprocal manner, Fed chair Jerome Powell revealed Thursday.”

“Average Inflation Targeting” is one of the most idiotic ideas to ever come out of the Federal Reserve, and that’s saying something. Former St. Louis Fed wanker Jim Bullard explains:

I posted this in April 2021:

Over the years, hundreds of millions of Americans have been permanently and materially harmed by the Fed’s monetary and Congress’ fiscal pro-inflation idiocy.

Powell, September 2023: “People Hate Inflation. Hate it.”

June 2024: “Lower income people at the margins of the economy have the worst experience experience the most pain from inflation.”

Powell, March 2025: "Your grocery bill is about PAST inflation."

The contempt Powell clearly has for most Americans is on display again below. Jerome has absolutely no clue how 90% of America lives. Why would he? He's worth 9-figures and has been a Wall Street insider for 40+ years.

Past Inflation (if you believe the CPI):

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Also via Grant’s:

“Politicians in the nation’s fourth-most-populace state, meanwhile, choose to combat the inflationary scourge via free money giveaways. New York Governor Kathy Hochul announced yesterday that the Empire State will mail “inflation refund” checks ranging from $150 to $400 to New Yorkers earning $150,000 and below later this year, with roughly eight million local residents eligible for the payments.

It’s how we roll in New York, fighting fire with fire.”

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Below: Milton Berg, Russell Napier, Edward Altman, Chris Whalen, Rupert Mitchell, Marc Faber, Porter Collins, Vincent Daniel, Daniel DiMartino Booth, and Pippa Malmgren.