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‘Ongoing’
The Fed hiked rates by 25bps on Wednesday, as expected. The decision was unanimous.
Contrary to what you might've been inclined to believe if you get your information from social media or take your cues from various "brand names" whose never-ending quest to stay relevant entails being wittingly co-opted into an echo chamber of idiocy, no other outcome was on the table for this meeting.
In the hours leading up to the decision, finance-focused social media was an asinine cacophony of speculation
“particularly given the distinct possibility that the macro regime which anchored consumer prices in the developed world for three decades is lost forever.”
The deflationary benefits of offshoring to cheap labor in China is rapidly being replaced by AI/robotics. Japan doesn’t have enough sushi chefs for its aging population. Robotics to the rescue. Call centers have cut 50% of employees as AI software has improved. The work of junior legal/scientific research is being turned over to AI. Even bookkeeping. As a society, we may not like what is happening- but it is happening.