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James E. Thorne questions the current stance of the Federal Reserve and Wall Street in favor of additional rate hikes.
He distinguishes between a change in relative prices and actual inflation, referencing indicators such as Trimmed Mean PCE and five-year inflation expectations. Thorne further points out concerns over decision-making in a "post factual world," suggesting that cheering from parts of Wall Street may overlook potential policy mistakes from the Fed.
Thorne has previously examined how accelerating digital technologies may drive S&P 500 earnings growth beyond traditional expectations in a recent analysis. He also addressed the potential market impact from the AI super cycle, including a long-term S&P 500 target, in a separate discussion. These earlier comments provide additional context to his current skepticism of prevailing monetary policy views.