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A Hawkish 75?
The Fed on Wednesday delivered a third consecutive 75bps rate hike, escalating a historic and, outside the housing market anyway, so-far quixotic, war on the hottest inflation in a generation.
Data showing the monthly pace of core price growth was double economists' forecasts in August compelled markets to price in some chance of a full-point hike at the September FOMC gathering. Although such a move would've dominated the financial pages from New York to London to Tokyo, it wouldn't have made
My 28 year old granddaughter just called the house and my wife answered the phone. She hands the phone to me, saying our granddaughter had a dream about me dying last night. So I tell her no, I’m not dead, and then I asked her why did she think I was dead, and she said she was drinking last night and passed out, woke up feeling terrible, and that’s probably the reason she had the dream. I told her she can’t drink all night and not expect a hangover. Similar to what years of unnecessarily loose fiscal policy will do to an economy.
As to inflation I have seen published industry estimates of heating and energy costs doubling this winter from nat gas prices. On the other hand, my gas bill is flat, the same for my electric bill.
H-Man, this economy is like braking a runaway train, from the time you apply the brakes until you stop, you can travel several miles.