Out Of Gas? US PPI Final Demand PRICES Crash To 2.7% YoY As Fed Withdraws Monetary Stimulus

Confounded Interest ^ | 04/13/2023 | Anthony B. Sanders

[Kaiser8408a]

Is the US economy out of gas? Or are we under The Fed’s massive thumb?

US Producer Price Index (PPI) final demand YoY fell to 2.7% in March as The Fed withdraws its massive monetary stimulus.

Final demand MoM fell -0.5% in March. But the interest number is CORE PPI ex food and energy actually down but at 3.6%. So, CORE PPI final demand growth is higher than the aggregate.

At least Biden is in Belfast Ireland making his usual gaffes, telling outrageous lies and looking totally lost. As usual. He can do less damage to the US by being in Ireland.

[Kaiser8408a]

Inflation is slowing because The Fed is withdrawing stimulus. As the election approaches, The Fed will expand QE again and lower rates.

[donozark]

The Fed will do whatever it takes. To keep Biden in office...

[Lonesome in Massachussets]

The lag between stimulus and response, and between response and perception is more than a year.

[ConservativeInPA]

We are still at the beginning of this economic mess. The American economy has serious structural deficiencies. The government cannot continue to have $1 trillion plus in deficit spending per year. The regulatory regime continues to inflate costs and stifle competition. Energy remains a huge inflator. WTI is trading over $82/bbl this morning and will only increase as summer approaches. You can fully expect $5/gal gasoline by August. That will lead to another rebound in inflation.

Interest rate hikes along will not fix the economy. The new mantra needs to be, “It’s government spending, stupid.”