The Fed’s Reaction Function Regarding Inflation Is Dead Wrong and Must Evolve Before It’s Too Late Enjoy this clip from our August 9, 2025 Around the Horn webcast in which we detail the structural reasons why the Fed’s reaction function regarding inflation must change before the Fed causes a recession that materially erodes the US’ fiscal health. If the Fed does not heed our warning, the result will be a guaranteed erosion of US central bank independence because the Fed is the only institution in the world with a balance sheet large and flexible enough to fill the Fourth Turning–sized demand hole in the US Treasury bond market. FWIW, this outcome is a high probability anyway in the context of the geopolitically driven supply-demand imbalance in the Treasury bond market, which we identified years ago in the context of our exceptionally accurate and highly lucrative Investing During a Fourth Turning Regime framework. The eventual erosion of Fed independence will simply occur much faster if the Powell Fed pushes the economy into a recession by not supplying the monetary policy support required to offset the advent of Trump’s tariff regime. You would be wise to protect your family’s purchasing power from these risks. ❤ #KISS #DrMo