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In Ominous Development, US Inflation Expectations Soar To Highest Since 2008
Uh oh.
A closely-watched measure of medium- and longer-term inflation expectations printed 3.3% in the preliminary read for January, an inauspicious development that'll raise a few eyebrows at the Fed.
The measure, reported alongside University of Michigan sentiment on Friday, conjured uncomfortable memories of June 2022, when a toasty print on the same measure piled insult atop injury vis-à-vis a disconcerting CPI readout released an hour and a half earlier. Just days later, the Fed upped th
Is it verboten on Wall St to mention that raising taxes, particularly on the wealthy, would be the easiest way to slay the inflation dragon? All the focus on what the Fed can or will do seems so silly when it’s not even clear interest rates (short of jacking them way up to the point of ensuring a recession) can do anything at this point and may even be counterproductive when you account for the additional stimulus from the interest on government debt (i.e. deficit spending). A Nobel prize in economics to whomever can show the average voter how much additional “tax” they will pay in the form of asset inflation, regulatory capture, tariffs, and labor costs to fund Trump’s policies.
Then again, I’ve got the brainpan of a stagecoach tilter, so what do I know?
Or even think of the howls of anguish from the poor billionaire class on a wealth tax on assets > $100 million. The diminishments to their lifestyle, oh the suffering to be endured.