The Inflation Train is Arriving on Schedule, and the Labor Train is Departing

Citizen Watch Report ^ | Michael

[davikkm]

But nothing looks like anything the Fed wanted to see.

The Fed’s financial plans are running off the rails already. With summer just gone by and the Fed’s first rate cut barely out of the station, already the bond vigilantes are pushing bond interest rates back up, and voting Fed members are already talking about stalling their future rate cuts—all due to inflation being back on the rise. The timing of inflation’s arrival is as I expected, but it is not at all what the Fed was hoping to see.

Bond investors are referred to as “vigilantes” when they bring true justice to interest rates by going in the opposite direct of what the Fed intends because keeping the market in sync with reality demands it. They do this when they smell inflation stinking up the air like a dead rat in the walls of the house because they don’t want to lose to inflation as they wait to maturity to get their money back out of bonds.

The Fed is looking to create a little slack in the economy to ease into a soft landing. The bond vigilantes have done the opposite and tightened it up the most in months, taking the 10YR Treasury bond back above 4% and holding it there, and the 10YR is a foundational basis for many market interest rates that are marked up off of that rate.

[MeneMeneTekelUpharsin]

Oh boy, here we go....

[pierrem15]

Hard to tell what's really going on when the economic statistics from the Fed Gov have as much to do with reality as the Soviet Union's.

You can be sure that if Trump wins, all the stats will be bad just as they're all glowing under Biden.

[eyeamok]

Don’t worry, it’s going to be just fine, we won’t run out of money any time soon, I promise they will print as much as we need...

[The Sons of Liberty]

The Inflation Train is Arriving on Schedule, and the Labor Train is Departing

When The Fed came out with their 50 basis point cut I figured two things were behind it -
1. They wanted to Help their Deep State communist candidate; and
2. The economy - mainly jobs - could be in trouble.

At that point, combating inflation became an afterthought, and given that the statistics and data presented by the Bureau of Labor Statistics, or any of The Deep State Agencies, is highly suspect and undergoes major revisions monthly, The Fed is really working in the blind.

[delta7]

So,so predictable. The idiot Powell lowers interest ( political stunt), still is printing $$$ Billions of dollars, and discounts supply induced inflation….don’t forget, Powell and Yellen stated our inflation is transitional. Lies, lies and more lies.

Having lived through President Carter’s 12 percent plus mortgage rates, 18 percent interest in money markets, and gas lines I can say that was nothing compared to what is awaiting us…..I can say PM’s was my financial savior back then, and it will be again.

US’s currency crisis is dead ahead. Prepare accordingly.

[SaxxonWoods]

This is good news because it means reality is sinking in. It would be bad news if everyone believed inflation is dead and acted upon that assumption. Inflation is about as low as it can get without cutting govt spending and cutting isn’t going to happen. The Fed’s current position is fine given the circumstances. It got inflation down from 9.3% to where it is today without destroying the economy, a lot of people said that was impossible. The FED will settle for inflation above 2% because it has no other good choice left.

[griswold3]

No no no. This time is different!