The Fed’s dual mandate is causing bifurcations in policy

Key Points

1. Inflation is rising above the Fed's 2% target, driven by goods rather than services.

2. A disappointing jobs report has raised concerns about economic stagnation and potential deterioration.

3. The Fed faces policy conflicts due to its dual mandate of controlling inflation and supporting employment.

4. Market expectations for a September rate cut have shifted following mixed economic data.

5. Upcoming Jackson Hole Symposium may provide clarity on the Fed's future monetary policy direction.