Agrees the PPI was a hot report, showing a disturbing trend toward higher inflation. Core PCE is running over 3%. The Fed must reaffirm its commitment to getting inflation back to 2%.

The Fed will take a wait-and-see stance due to uncertainty. Markets have been complacent, assuming conflict will be resolved without major damage.

Agriculture faces a fertilizer issue with planting season coming up, which could affect farm income and is a major factor to watch.

The economy is in fairly good condition and in good shape for 2026. The labor market is fine, adjusted for tougher immigration policy. The Fed has preemptively adjusted for labor market weakness.

Inflation is not looking good. The Fed will have to focus more on inflation through year-end. Markets project inflation in the high 2% range by end of 2027, meaning missing the target for years. The committee probably has to get a little tougher on inflation.

AI will enhance productivity and be a good thing. Technical graduates will be in demand. AI may be a reason companies cut excess staff, but it will create new jobs we can't yet imagine.