Inflation hits the big time. Well Fed Chair Jay Powell made it official this week. Even he is getting concerned now about
inflation. The threat of persistently higher inflation has grown. The test that we've articulated I think clearly has been
met. Now inflation is run well above 2 percent for long enough. The word transitory has different meanings to different people.
It's probably a good time to retire that that word and try to explain more clearly what we mean. You've seen our policy adapt
and you'll see it continue to adapt. We will use our tools to make sure that higher inflation does not become entrenched. The
economy is very strong and inflationary pressures are high and it is therefore appropriate in my view to consider wrapping up
the taper of our asset purchases which we actually announced at the November meeting. Perhaps a few months sooner. And if Mr.
Powell needed any confirmation that we are seeing our prices skyrocket he need look no further than American sports. We knew
we were in for it when Stephen Cohen bought the New York Mets and pledged to do whatever it takes to win. We're going to
strengthen our farm system keep our players healthy and use the best analytics.
We're going to build a process that produces great teams year in and year out.
You build champions you don't buy them. But this week Mr. Cohen was buying instead of building ponying up one hundred thirty
million dollars over three years for the great pitcher Max Scherzer a great pitcher who just happens to be 37 years old.
And others like Michael Reese of our capital agree with Steve Cohen that it's really like any other kind of investing. We see
real upside in sports investing and we're taking the same DNA and applying it to a different industry. But if you think it's
only professional sports they're seeing this kind of runaway inflation. You should think again. Take the case of Notre Dame
football coach Brian Kelly who said it would take a fairy godmother with a 250 million dollar check to get him to leave.
But who left for a mere one hundred million dollars over 10 years offered by LSU instead of that fairy godmother or even
better the Oklahoma head coach. Lincoln Riley who moved on to USC saying he did it because of the support he felt there as a
football coach to have that support behind you from some of the most influential people in this university from your bosses from
people they're going to make big decisions. It said it said everything that I needed to hear that kind of support that will
pay. Coach Riley one hundred and ten million dollars give him a six million dollar house and get this unlimited use of a private
jet for him and his family. Good luck to Jay Powell if he thinks he can tame that sort of inflation.