8/28/25 Roundup: Fed Policy Theatre & Sound Money Realities

This past week delivered three developments that, taken together, suggest the foundations of the U.S. monetary and financial order are shifting.

None of them were shocking in isolation. But when viewed together, they point to accelerating change, and highlight why assets outside the fiat system, like bitcoin and gold, continue to gain relevance.

1. The Fed Moves the Goalposts

At Jackson Hole, Jerome Powell signaled that the Federal Reserve is preparing to justify rate cuts on the basis of labor market weakness, even as CPI remains stubbornly nearly 3%.

More striking was the quiet admission that the Fed’s long-standing 2% inflation target no longer holds the same weight.

It’s also worth noting that CPI itself understates the degree of monetary debasement underway. Asset prices, fiscal deficits, and monetary aggregates all reflect inflation far above the reported figure, reminding us that the official number often obscures the true erosion of purchasing power.