[Mariner]

And you believe those trends will continue if the fed eases on the funds rate?

[Moonman62]

I believe that if the Fed lowers rates to be in more of a logical relationship to other rates in the yield curve, that would be neutral or in fact be disinflationary. The problem is when the Fed waits too long to lower rate (as it always does), then it has to lower rates too much, which is inflationary.

The Fed creates inflation at both extremes of the credit cycle. It creates too much money when rates are too low, and it does economic damage when rates are too high. Both results are inflationary.