Why is it so hard for the @federalreserve to say "this time is different" when it comes to the level of US government debt to gdp levels at well above 100% and budget deficits running 5%+ of GDP for as far as the eye can see when it is discussing its monetary policy outlook? They can't seem to explain why the economy has been stronger than expected, why the labor market is hotter than expected, why housing prices remain higher than expected and why broad inflation continues to run well above target. And yet despite this uncertainty, they are confident that they will be able to return inflation to 2% by cutting rates 10+ times over the next 2.5 years. Their confidence is ridiculous. Full Stop. The only logical explanation is that they recognize that the US is in a fiscal dominance position and the government needs lower rates even though the private sector is benefiting from loosely accommodative policy already. They recognize that DC is totally dysfunctional, there is no hope to raise taxes or cut spending in any reasonable time period so the only way to help the deficits out is to cut rates to lower government interest expense and hope to raise asset prices which will help raise tax receipts. The Fed can never admit this reality but their actions in the face of the data we continue to observe suggests this is the only explanation. They will inflate the debts away and hope the public doesn't recognize the inflation tax and never revolts. I wish the gaslighting would stop and they could just admit the truth and we could move on.