The Federal Reserve appears unhurried about rate cuts, with Powell citing economic resilience during his Dallas speech. However, a deeper analysis reveals concerning patterns.

Behind the optimistic federal narrative lies a more complex reality: Government-sponsored employment programs appear to be artificially inflating job numbers ahead of election season. Like European markets, the U.S. faces a proliferation of part-time positions with workers juggling multiple jobs to survive. These government-created positions mask underlying economic weaknesses while providing politically advantageous statistics.

This context makes Powell's recent statements look like damage control for previous hasty rate cuts and rising inflation, rather than genuine economic strength. Besides this: the Fed still is in the processto dry the Eurodollar credit machine. This should lead to more problems in the ECB tower where the Eurocronies are bagging for cheap money and trying to get back to the zero bound interest rate policy. They need the Fed to capitulate to avoid capital flight.