QE Forever

From Pento Portfolio Strategies

The Federal Reserve’s final meeting of 2025 was a masterclass in obfuscation and monetary malfeasance. Chair Jerome Powell, with his trademark calm delivery, announced yet another 25-basis point cut, bringing the federal funds rate down to 3.5–3.75%. This marks the third consecutive cut since September, a cumulative 75 bps reduction in just three months. Powell himself admitted, “the fed funds rate is now within a broad range of estimates of its neutral value and we are well positioned to wait to see how the economy evolves”. Translation: the Fed has pushed policy to the high end of neutral, but refuses to admit it is already stoking inflationary flames.