The fed wants to stick the "soft landing", but job reports are sucking and they don't want a recession.
In spite of rising inflation (they are fudging the numbers too), Powell has specifically said that they will cut rates. If we are not meeting the inflation goals they have, why are they even talking about rate cuts at all?
Simple. The government can barely service the debt as it is. They cannot afford a recession (because that would lower tax revenue). Inflation is their best option between two bad options.
You're right about one thing, record inflation is on the way. They aren't gonna say that, but the writing is on the wall for anyone paying attention.
Look at how much money we printed since 2020. We should have had higher interest rates for longer than we have. It took nearly a decade to undo the inflation velocity of the 70s. We have not beaten it, so why have they already pivoted? They will continue to do more QE because they have no other choice.
I think it will creep for the next year, and we will be in a crisis by 2026-2027, or it will just run pretty hot for at least 5-10 years.