POWELL JUST ADMITTED THE FED CAN’T FIX SUPPLY SHOCKS $DXYPowell’s point is clear: the Fed can cool demand, but it cannot create more oil, energy, or raw materials when supply breaks. Institutions should treat these regimes as inflationary, with real assets and energy absorbing flows while bonds and other nominal exposures get repriced.

I think this matters now because markets still overestimate central bank power in a physical shortage regime. When supply is the problem, price discovery shifts fast to scarcity, and that’s where the next violent rotation usually starts.

Not financial advice. Manage your risk.

#Fed #Inflation #Macro #Commodities #Energy

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