Posted on 06/10/2022 6:02:29 AM PDT by Browns Ultra Fan
Feelin’ hot, hot, hot!
Inflation, the bane of the middle class and working families, just rose to 8.6%.
Core inflation, that excludes energy and food, actually declined slightly to 6% from 6.2% in April. But since most families are concerned with gas prices and food, (not to mention home prices growing at 21.17% YoY), core inflation really underestimates the suffering.
The Fed is expecting two half-point hikes followed by quarter-point increases.
And mortgage rates keep rising as The Fed fights the inflation fire.
Here is a video of Milton Friedman speaking on inflation.
On the hotter than expected inflation news, the US Treasury 10Y-2Y curve flattened to 12 bps.
(Excerpt) Read more at confoundedinterest.net ...
Biden will have to go on the Muppet show for his next interview.
The Muppets are too smart for him.
VIDEO: Rick Santelli rips the Biden Administration for May’s red hot inflation numbers
https://rumble.com/v17zdep—rick-santelli-rips-the-biden-administration-for-mays-red-hot-inflation-num.html
As long as Sock Puppet can still get his mint chocolate chip ice cream, everything’s OK.
But ... January 6 two years ago.
Gee do you think there’s a connection between inflation and why every network is streaming a two year old story?
Nancy has a freezer full for him
The inflation I see is well over 100%. 8% is a bunch of pure political BS.
could be good for investors?
double digit CD rates?
16.5% GNMA bonds?
ya suppose lindsey has ever had a hold on little joe?
They sure are taking their time to reach those numbers.
Shouting “Squirrel!” at every new crisis is a lot like the boy who cried “Wolf!”. After a while people pay no attention to the distraction.
Until a real “squirrel” pops up.
Then we won’t be ready to play “whack a mole” with all the new “squirrels”.
From the Taylor Rule, using current 8.6% YoY inflation, Fed Funds rate should be 11%.
Using the same 1980 methodology for CPI, it would be 17% and the Fed Funds rate should be 20%.
The Fed is sitting on their hands wishing inflation would go away, and thereby they are contributing to making it longer, deeper, and worse. The risk is it will get completely out of control and go hyper.
I think it is time to again remove things from the inflation calculation so we can get this under control. /s
...not to mention home prices growing at 21.17% YoY
—
Everyone knows it’s all perfectly normal for house prices to go up 20% YoY.
2022 a $500k home will be $600K in 2023, $720 in 2024, $848 in 2025, $1M in 2026.
No problem as we’re all getting 20% YoY wage increases, right?
They sure are taking their time to reach those numbers.
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that can be explain by the seldom mentioned “Propensity Index”
the banks have the propensity to RAISE the rates they pay on CD’s SLOWER than they LOWER rates they pay on CDs
Bidet fiddles, America 🥵 burns.
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