"Transitory" Inflation is still here – month 5 . While the Fed tries to convince us it won't last, inflation is soaring higher and higher and bonds are dropping as that market doesn't believe a word the Fed is saying – especially after yesterday's decade-high 0.8% jump in Consumer Prices – double the projections by the usual crew of leading Economorons. How long inflation readings persist on the high side has implications for when the Fed decides to start withdrawing monetary stimulus by paring back bond-buying and raising interest rates from near zero . “Transient does not mean one month. As supply shortages run up against aftershocks from fiscal stimulus, and the base for comparison remains low, the CPI will continue to run hot into the summer. The impact of the Colonial pipeline shutdown on fuel prices will also have to be monitored closely.” — Andrew Husby and Yelena Shulyatyeva, U.S. economists IN PROGRESS
"Transitory" Inflation is still here – month 5.
While the Fed tries to convince us it won't last, inflation is soaring higher and higher and bonds are dropping as that market doesn't believe a word the Fed is saying – especially after yesterday's decade-high 0.8% jump in Consumer Prices – double the projections by the usual crew of leading Economorons. How long inflation readings persist on the high side has implications for when the Fed decides to start withdrawing monetary stimulus by paring back bond-buying and raising interest rates from near zero.
“Transient does not mean one month. As supply shortages run up against aftershocks from fiscal stimulus, and the base for comparison remains low, the CPI will continue to run hot into the summer. The impact of the Colonial pipeline shutdown on fuel prices will also have to be monitored closely.” — Andrew Husby and Yelena Shulyatyeva, U.S. economists
IN PROGRESS
