Posted on 02/16/2023 7:59:29 AM PST by EBH
January’s producer price index, another inflation measure, rose 0.7% on the month while economists surveyed by Dow Jones expected a 0.4% increase. Initial jobless claims unexpectedly fell for the week ending February 11, per a Labor Department report.
The new data comes after January’s consumer price index and retail sales report were both higher than expected, suggesting that the Federal Reserve may have further to go in its efforts to tame inflation.
“Both inflation readings this week point to the stickiness of inflation and that the fight isn’t over, especially when considering today’s PPI reading was the highest month-over-month increase since early summer,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley.
Loewengart added that declining jobless claims suggest the labor market remains tight.
“It shouldn’t be a surprise to see the market take a breather as hopes of a dovish Fed in the coming months fade,” he said.
(Excerpt) Read more at cnbc.com ...
What is the Fed going to do? They have to crash it all.
They expected a much lower PPI. This is nearly double what they anticipated.
The market has been taking a breather for two years, pretty much stagnant.
Lower lows and lower highs...not stagnant.
“EXPERTS” predicted....
Sure.
It’s comical when Joe tells us rubes that the rate on inflation is lower now than on the day he took office.
And that gas prices are also lower now than when he took office.
Oh you should see the CNN headline for the same report. I nearly bust out laughing!
Producer prices rose in January but annual inflation continued to cool
> They expected a much lower PPI. <
Somebody at FedGov dropped the ball, and forgot to massage the data.
Don’t forget to “normalize the fluctuations on a seasonable basis” the next time, guys.
Last year this time Crisco Canola Oil 40-oz bottle at WalMart was three bucks. Yesterday I paid six dollars for the same bottle. Not making this up. It shows no sign of abating.
Last time inflation was running hot, then FED chair Volcker rapidly jacked up interest rates to HIGHER level than inflation. It was painful for a while. Media named it Reaganomics.
But then the result was inflation cooled off rapidly. That was followed by the long-term economic boom of Reagan era. Media suddenly stopped calling it Reaganomics.
Currently inflation is running at 7-7.5%. Federal funds rate is well below at 4.25%. Not nearly enough to subdue inflation. Powell is no Volcker.
Earlier in the day I read a study from the Center for Immigration Studies.
Employment for native born Americans has dropped by 1.9 million since Q4 2019, the last quarter before Covid.
During the same time period, employment for USA foreign born workers has increased by 2.0 million.
Probably just a coincidence.
Our currency is rapidly becoming worthless. We used to laugh about the prospect of having to take wheelbarrows full of dollar bills to the store just to buy a loaf of bread. It’s coming.
"In the United States, we have also had, and in most countries, a third less important factor that has contributed to excessive increases in the quantity of money, and that has been mistaken policies by the central bank." "Professor Siegan referred to the mistake of the Federal Reserve Bank inthe late '20s and early '30s. From 1929 to 1933 the quantity of money in the United States went down by a third, and that was a major factor that produced the catastrophe. That was the great mistake of the Federal Reserve. It learned from that mistake. Government agencies, like people, don't always make the same mistake the next time; they make a different one. And since that period, the central banks have tended to make the mistake in the opposite direction. Their mistake has almost always been caused by confusing their function, by thinking that they had something to do with interest rates instead of recognizing that their real function was to control the quantity of money." - Milton Friedman
https://www.youtube.com/watch?v=B_nGEj8wIP0
Recorded at University of San Diego & San Diego Chamber of Commerce ©1978
27:16 min mark
I’m sure the Deep State got to Powell, and told him two things:
1. We prefer inflation to a recession because a recession is worse, politically.
2. High interest rates put a dent in our ability to borrow and spend. And we love to borrow and spend.
I used to get the 6qt box of Havoline motor oil at WM for $22.98 a few months ago. Now it’s $29.98. A 30% increase.
6.5% is a lie.
The economy is running too hot. They can’t slow it down so far. Marcus Bank now paying 3.75% on liquid savings accounts. 6-month T-bills at 6%, nice.
‘Experts’ around here say we are in a recession, haha.
Jpowell has been raising rates at the fastest pace in fed history. The market of late hasn’t believed him in higher rates. I wonder who blinks. Copper, energy etc all point to higher rates.
Look up what the FED did with M2 during that time - that was what really caused inflation to fall.
200 points in the DOW is nada..........
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