Posted on 02/10/2022 5:54:07 AM PST by Browns Ultra Fan
As expected, US inflation surged from 7.0% in December to 7.5% in January.
REAL average weekly earnings growth YoY fell to -3.1%.
At 7.5% CPI, the Taylor Rule suggests that The Federal Reserve should have their target rate be 18.90%.
At least CORE inflation is “only” 6% YoY.
Yes, this is Powell’s famous chili recipe if The Fed actually starts to raise rates and pare back the balance sheet stimulus.
(Excerpt) Read more at confoundedinterest.net ...
Wow! That’s bad, and even after they massage the numbers.
Health of the State!
I have heard no plan about what to do about it, except maybe to make it worse. I suppose recession isn’t far behind. They are deliberately spiking the ball.
Uh, really? "Dozens of Kraft Mac & Cheese versions will see price hikes, from a 3.5% increase on a pack of EZ Mac to 20% for a 7.25-ounce dish of Kraft Big Bowl Mac & Cheese." Source
The FED is already tightening. The ‘Shadow Rate’ has risen 85 basis points over the last 90 days. That’s in the top 5% of moves ever. Shadow rate is in positive territory for the first time since the pandemic started.
Another shadow rate, the Wu-Xia shadow rate, has climbed 1.5 percentage points since October.
Biden started the fire and the FED is doing fire control. The fight will be interesting to work around for us investors.
Never a dull moment with Democrats in charge. Bond Market finally reacting too, I’ve started buying short-term Treasury notes and will ladder up with the rate rise. Short-term bonds returning more than liquid bank money now, whoo-hoo.
Meanwhile, energy still throwing off BIG dividends, OPEC+ having trouble meeting quotas. Energy stupidity a big part of Biden’s inflation, so take advantage.
EVERYTHING we regularly buy at the grocery store has increased, sometimes 2-3 times in a month.
Any items that are under $2, seems like the price is up $.10 every time we go to the store.
Then when you count that all federal gov’t employees and entitlement plan recipients will HAVE to get cost of living raises, it is really out of control. IMHO
Biden Addresses Soaring Inflation, Blames Pandemic, Lies About Wages
Gas has gone from $2 a gal to $3.25 in a year!
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