US equivalent rent of residences continues to fall like a paralyzed falcon to 2.2% YoY.
Today’s report on PCE YoY printed at 1.45%.
And the Taylor Rule (Rudebusch) based on a 1.45% Core PCE reading is …1.45%!
IF Powell & Co pay attention to this specification of the Taylor Rule (they haven’t in the past), then there isn’t likely a Fed Funds Target rate on the horizon. This is consistent with the Fed Funds Dots Plot.