Posted on 09/14/2023 8:37:02 AM PDT by Kaiser8408a
Jerome Powell is the God of Hellfire and he brought us …. FIRE! By rapildy raising The Fed’s target rate rapidly. And then sending mixed signals as inflation begins heating up … again.
WTI crude just hit $90. Rising oil prices may be one of the reasons.
After yesterday’s hotter than expected rebound in CPI, all eyes are on PPI for signs that the pipeline for inflation may be more dove-friendly.
It wasn’t!
Producer Prices rose 0.7% MoM in August (up from +0.3% in July and hotter than the +0.4% exp). That is the hottest PPI since June 2022, and pushed YoY prices up 1.6%…
Source: Bloomberg
Goods prices are reaccelerating fast, now back into inflation YoY (as Services cost growth slowed only modestly)…
Source: Bloomberg
As a reminder, much of last month’s PPI rise was driven by a big jump in portfolio management costs – as stocks soared. August saw a further rise in those costs…
Source: Bloomberg
More problematically, the pipeline for PPI appears to have inflected as intermediate demand is re-accelerating…
Source: Bloomberg
This is not what The Fed wanted to hear.
(Excerpt) Read more at confoundedinterest.net ...
Saudis reduced daily production by 1 million bbls a day and the Russians cut their production by 300,000 bbls a day. They are the world’s two largest oil exporters. It shouldn’t be a surprise that oil prices are skyrocketing.
thank God for The Inflation Reduction Act or we’d all be dead...
Yes, and be assured that both Russia and Saudi know the effect of this on Biden’s political capital.
This time it’s different....
Commenting on the possible UAW strike a professor stated that the ‘workers have woken from the illusion of self sufficiency, upward mobility, and rugged individualism.’
We apparently lack the character that would sustain us through tough times now.
We’re so screwed.
Lucky for us we still have the Strategic Petroleum Reserves (SPR) - Oh wait that little commie pervert spent those down too...
Statement obviously correct but why didn’t bond prices move?
I think it’s because everyone expects the Fed to hold rates.
I think there could could be a surprise coming.
The fed can not hold rates(well fed fund rate) but the rest determined by markets they should be showing higher yields but they are not.
Maybe they’ve just given up. LOL.
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