FinTwit Loses Mind As Hot Core Inflation Print Embarrasses Jay Powell
In case the blowout June jobs report wasn't enough to make the forthcoming July Fed cut look silly enough, you can now throw in a hot (or, what counts for "hot" these days) CPI report.
Consumer prices rose 0.1% in June on the headline number, which was more than expected, but the core print jumped 0.3%, the most since January of last year, a truly amusing development in light of the fact that subdued inflation is one of the only plausible justifications for preemptive Fed cuts. The YoY number f
“Subdued” inflation is the most misreported financial story of the last decade.
Inflation once it appears, may not be controllable. When the Dollar drops, look out!
and yet the Dow just hit another all-time high…
which “should” not have happened given that equities continue to trade on CB accomodation.
btw still waiting for the presidential tweet taking credit.
Asset inflation that leaves the majority of Americans who do not own stocks behind and makes homes unaffordable for many, stagnant real wages, and now increased consumer prices. And people wonder why populism and anti-Establishment anger are rife.
it’s not the rise of populism that’s surprising (sad as it might be, though).
What never ceases to amaze me is the fact that the anti-establishment anger led people to vote for the epitome of everything they profess to despise.
I still want to refuse to believe that it’s just because he, too, hates brown people.
It’s not you or brown people, as a narcissistic psychopath (some say sociopath, which Putin is)he has no empathy for anyone, save himself and his spawn.
Powell’s previous June caution has now been demonstrated as warrented by today’s increasing inflation numbers. He just ‘blew it’ in Congressional testimony yesterday by setting the stage for his compliance to Trump’s tweeted orders to lower interest rates and lower the dollar so Trump could start an ill-advised currency war to complement his failed tariff war.
The chart shows that one “hot “print doesn’t mean much. Let’s not jump to conclusions just yet.
16 straight months of YOY core prints at 2.0% or higher. I don’t think that’s jumping to conclusions based on one print…