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OK, so let's think about what the headlines and news stories are likely to be for the rest of the year. Instead of happy news about inflation getting under control, a simple continuation of 0.3-0.4 month-over-month numbers will translate into increasing year-over-year inflation rates due to the months coming off after 12 months being on average below the current rate.

So instead of happy news justifying a rate cut, we will see increasing pain and discomfort as the media is confronted with the reality that inflation is not under control. (Let's not even get into what happens if a 0.5 or 0.6% M-o-M figure hits the press.)

Rate cuts are most likely going to keep getting pushed out. Increasing, rather than decreasing, annualized inflation numbers will have pundits start talking about a need to increase rates again before things get too bad. While the Fed will not like the idea of raising rates, it will hate the idea of having to do so belatedly after inflationary fires have fully returned, even worse.

The next president will have an economic mess on his hands, courtesy of Democrat borrow-and-spend governance.

1 posted on 04/22/2024 10:20:24 AM PDT by EnderWiggin1970
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To: EnderWiggin1970

Real inflation is 12% to 15%.


2 posted on 04/22/2024 10:24:45 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: EnderWiggin1970

The idiots at the Fed have been trying to avoid a “hard landing”. Ain’t gonna happen. The only way most people (the economy) is with a kick to the guts.

Crank the interest rates and flush out the idiots.


3 posted on 04/22/2024 10:26:57 AM PDT by glorgau
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To: EnderWiggin1970

This is more bolted in as a long lasting feature, the result of trillions in omnibus bills, Fed paper dollar printing and massive bills like the green deal, build back better, covid relief, etc.


5 posted on 04/22/2024 10:34:56 AM PDT by lurk (u)
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To: EnderWiggin1970

It doesn’t matter what the government or media say about inflation numbers.

Real people see it with their own eyes. If prices go up in the grocery stores (they are) they note that. Buying food is fundamental and transcends politics. Same with gasoline prices.

Many? Most? people live paycheck to paycheck, and inflation hurts them more than those with more money. Telling them this pain is imaginary just insults them and doesn’t help.


6 posted on 04/22/2024 10:36:01 AM PDT by Alas Babylon! (Repeal the Patriot Act; Abolish the DHS; reform FBI top to bottom!)
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To: EnderWiggin1970

With our massive debt what are the chances of hyper inflation if the Fed doesn’t raise rates in time?


8 posted on 04/22/2024 10:44:48 AM PDT by GOPJ (Two items Biden finds at 'Ice Cream Shoppes'? A: Ice cream cones and 7 year old girls to look at...)
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To: EnderWiggin1970
Don't worry, Creepy Joe has the solution. If prices are rising too fast, just print more money so everyone has enough cash to pay the higher prices.

Why are you laughing/crying?

9 posted on 04/22/2024 10:49:08 AM PDT by Sicon ("All animals are equal, but some animals are more equal than others." - G. Orwell>)
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To: EnderWiggin1970

There will be no rate cut. If they were smart, they would increase rates at least 100 bps, more likely 200. But then that would cause the stock market to tumble, which would help Trump get elected.


11 posted on 04/22/2024 11:06:58 AM PDT by Jonny7797
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To: EnderWiggin1970

And just remember Inflation is cumulative.


14 posted on 04/22/2024 11:23:06 AM PDT by frogjerk (More people have died trusting the government than not trusting the government.)
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To: EnderWiggin1970

Inflation rates are a figment of some Bureaucrats computer. FED inflation is something like 3,000% so why quibble over phony monthly rates.


16 posted on 04/22/2024 11:50:40 AM PDT by mountainlion (Live well those that did not make it back.)
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To: EnderWiggin1970

There is an equilibrium equation between the amount of money and the things it can buy. The money supply was pumped over a year ago. Since the amount of money printing has been restricted in the last few months any inflation remaining is the result of that equilibrium dying down .


17 posted on 04/22/2024 1:17:20 PM PDT by Nateman (Democrats did not strive for fraud friendly voting merely to continue honest elections.)
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