Ingvar Rueckemann @ingruc: "👀 Really quite interesting Fed..."

Sweden

👀 Really quite interesting Fed decision yesterday. They decided to: • lower rates by 25 bps, to a range of 3.50 - 3.75% • Start buying $40 billion worth of US Treasuries from January I found that remarkable. 💸 US inflation is at 3%, and not convincingly moving toward the Fed's 2% goal. 🏗 US GDP is also expected to grow around 2% annualized. Unemployment is around 4%, still very close to historical lows. 🤔 Now why would you lower rates and essentially start some form of QE (quantitative easing) in such an environment? ❌It does not seem like the Fed is truly "data-driven", as they claim to be. ✅ The more likely explanation is that Donald Trump's years of pressure on Jerome Powell and the Board of Governors is starting to bear fruit. My takeaway for the Fed in 2026: 👉 Expect continued pressure on the Fed from the Trump administration 👉 Expect several rate cuts next year - not just 25 bps lower as the Fed currently forecasts 👉 Don't expect the Fed to be committed to 2% inflation. 3% (or more) seem perfectly acceptable nowadays. Investors should position accordingly. Have a great day! Ingvar $SPX500 $NSDQ100

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