So after transitory inflation, a massive Fed pivot and the start of 7 rate cuts with the 10-year down to 3.5%… oh, wait.   What just happened?

The general trajectory has continued to be this: a solid economy, sticky inflation from services, massive deficits and government spending, AI enthusiasm.  The job cuts from AI shouldn’t happen for years.  And my Econ 101 text book said technology improvements should also create jobs.  Highly productive boomers flush with cash haven’t reached the “Silver Tsunami” yet.  Job seekers can still be relatively selective.  Money and no-interest revolving credit cards still create good liquidity.

So the economy still hums along even with short rates at 5.4%.