US Producer Prices Flatline. Jobless Claims Stay Low
In what looked like another constructive development on the inflation front in the US, producer prices rose less than expected in June.
A day on from what was widely hailed as the first real evidence of consumer price disinflation of the current cycle, the BLS said wholesale prices rose just 0.1% last month from May. That matched the lowest estimate from more than four-dozen economists.
The cooler-than-anticipated print came on the heels of a 0.4% drop the prior month. On a YoY basis, the head
I guess the Fed has used the appropriate formula and timing to arrest and control inflation while also avoiding a recession.
One can only note the obvious – they apparently knew what they were doing. And being able see them tested under Powell’s leadership, and able to express confidence in their judgements is a confidence-building outcome. Jobless claims and PPI are less a source of worry and less a sign of economic weakening. Earlier on, I lacked confidence in Powell. Now, in fairness, I feel a need to say, “Yay, Jerry!”
Walt…Thanks for the new email format and a set of articles in each. Really liking it.