Hammack adds:

• Now is a challenging time for monetary policy making
• it will take a couple of years to get back to 2% inflation target
• the Fed bigger miss is on the inflation side relative to job mandate.
• Inflation overshoot goes beyond tariff pressure.
• A little bit nervous about current policy given inflation.
• I would not want to cut rates into accommodative territory.
• The economy is pretty robust and healthy right now
• is closely watching inflation expectations data
• AI boom could mirror what happened with Internet build out.
• AI is a structural economic change is not well-suited to monetary policy changes.
• Fed has some excellent job managing federal funds rate, but it’s a small market.
• It’s good for the Fed to debate what its interest rate target should be.
• Changing Fed rate target likely would not have broader policy impact
• Regularly hears about bifurcated economy, lower incomes challenged.
• Consumption is driving by high income American

It seems the memo is to tilt toward inflation over employment amongst most of the Fed officials. Is the nuance tilt, a way to slow down “markets” (i.e. stocks) without saying so.

The K economy threatens a large swatch of the population who are more impacted by inflation. The “have-nots” don’t care about stocks they care about prices. The “haves” meanwhile are not concerned about anything – until they do (like a correction in stocks).

NASDAQ index is down -1.75% while the S&P index is down -1.07%.