Posted on 06/13/2022 2:05:21 PM PDT by Mariner
(Reuters) - Benchmark 10-year Treasury yields hit their highest level since 2011 on Monday, and a key part of the yield curve inverted for the first time since April as investors braced for the prospect that the Federal Reserve’s attempts to stem soaring inflation will dent the economy.
Yields jumped after data on Friday showed that U.S. consumer prices accelerated in May as gasoline prices hit a record high and the cost of food soared, leading to the largest annual increase in nearly 40-1/2 years.
The Fed is expected to hike rates by 50 basis points when it concludes its two-day meeting on Wednesday, with traders now seeing a 75 basis point increase as having a 21% probability.
UBS strategist Rohan Khanna said hawkish European Central Bank communication alongside the inflation print "have completely shattered this idea that the Fed may not deliver 75 bps or that other central banks will move in a gradual pace."
(Excerpt) Read more at finance.yahoo.com ...
The US Treasury cannot afford to refi 1 - 3 trillion dollars per year at the rates it will take to end this inflation. That would be 10% to start...and the resulting economic cataclysm.
Bet on inflation continuing and maybe accelerating.
The idea batted around in the media, that inflation may be a quickly passing thing, is contrary to all history and reason.
Who is to says the printing press aren’t running at “damn the torpedoes” speed. Purposely done ……
agreed. this inflation spiral will run until they get another Volcker. The interest on the debt will exceed the defense budget & may compete with SS.
The media is spreading disinformation.
Why do you believe that?
I sold my WEBS position to soon ... It balances my loses ...
“I gotta believe inflation comes down below 3% by this time next year.”
Only extraordinary interest rates and total demand destruction will do that.
Collapse is what it would take.
The bigger threat to the U.S. economy right now is a long-term deflationary trend.
Is there a comparable resource available to document not just the money SUPPLY, but the VELOCITY of money in the U.S. economy?
All that money will be chasing fewer goods.
Wildfire.
Reducing inflation takes years because the current inflation has to flow through the full supply chain—and inflationary expectations by vendors is baked in for at least a few years until consumers go on strike.
The printing presses rolled in 2010 to combat deflation ... and here we are ...
“I think a rapid decline in demand for all kinds of products and services is a very realistic possibility.”
Sure, once the inflation burns through the world’s economy making nearly every currency worthless.
They’ve been rolling at full capacity for a dozen years.
You do understand the liberals are in charge.....right???
If anyone can screw up a perfectly good economy it’s President Retard and his buddies 🤪
Yay - keep voting libtard for complete collapse
the current inflation is NOT primarily a function of monetary policy but a secular function of biden implementing the New Green Deal with across-the-board polices designed to destroy domestic fossil-fuel production ...
the resulting run-away energy prices are causing prices increases because energy is THE primary input into everything that makes up modern living, including resource extraction, resource refining, manufacturing, transportation, farming, fertilizer and agricultural chemicals, food preservation, medical care, communications and telecommunications, computing, internet, online commerce, construction and construction materials, clothing, and heating and cooling ...
as a consequence, trying to “fix” the above inflation by raising interest rates will not only NOT fix the current inflation, but will crash the economy ...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.