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Inflation hits 9.1%. Update: Wholesale 11.3%

Posted on 7/13/22 at 7:38 am
Posted by Lsut81
Member since Jun 2005
83682 posts
Posted on 7/13/22 at 7:38 am
So what happens now? Fed hikes rates .75 the same week Q2 GDP comes in that we’re in a recession?
This post was edited on 7/14/22 at 8:25 am
Posted by I Love Bama
Alabama
Member since Nov 2007
38421 posts
Posted on 7/13/22 at 7:39 am to
75 basis points is all but guaranteed now with a possibility of 100 basis points.


ETA: I do think this is the peak. CPI is a lagging indicator and we have already seen commodities fall off a cliff. I think we see it dip next month and then start falling the months after.



Dollar is going to continue to go parabolic for now.
This post was edited on 7/13/22 at 7:43 am
Posted by Lsut81
Member since Jun 2005
83682 posts
Posted on 7/13/22 at 7:42 am to
quote:

75 basis points is all but guaranteed now with a possibility of 100 basis points.


Already priced into market or do we see a huge reaction…. Guess those looking to buy homes are F’d
Posted by castorinho
13623 posts
Member since Nov 2010
86476 posts
Posted on 7/13/22 at 7:46 am to
quote:

Dollar is going to continue to go parabolic for now.

we flipped the EUR
Posted by FLObserver
Jacksonville
Member since Nov 2005
15785 posts
Posted on 7/13/22 at 7:46 am to
I think next Months Numbers will be more important since the fed was so slow to really start raising rates. What i mean by that is 25 basis points increase did nothing but the 75 basis points hoping will start to kick in. S&P will be super choppy until then down until next months report.
This post was edited on 7/13/22 at 7:58 am
Posted by Free888
Member since Oct 2019
2868 posts
Posted on 7/13/22 at 7:51 am to
CNBC just said 80% chance of 75 basis point increase in September
Posted by Lsut81
Member since Jun 2005
83682 posts
Posted on 7/13/22 at 7:53 am to
Futures down 400….
Posted by Realityintheface
Member since May 2022
1784 posts
Posted on 7/13/22 at 7:56 am to
quote:

Guess those looking to buy homes are F’d


No they are not. It’s just that they no longer have access to free money. Which is not normal.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
32704 posts
Posted on 7/13/22 at 7:56 am to
Doom

Dollar exploding in value going to kill earnings and market will tank
Fed has to consider a 100bp hike now, 75bp is guaranteed
Inflation is still running rampant with no signs of a peak - Fed measures haven’t proven to knock it down yet
Posted by thegreatboudini
Member since Oct 2008
7084 posts
Posted on 7/13/22 at 7:58 am to
Wow. That's a big fricking number.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11843 posts
Posted on 7/13/22 at 8:02 am to
The dollar is spiking! Inflation is out of control!
Posted by BottomlandBrew
Member since Aug 2010
29210 posts
Posted on 7/13/22 at 8:04 am to
Posted by Lsut81
Member since Jun 2005
83682 posts
Posted on 7/13/22 at 8:08 am to
Saying 100% chance of .75 hike and now almost 50% chance of full point hike
Posted by Upperdecker
St. George, LA
Member since Nov 2014
32704 posts
Posted on 7/13/22 at 8:10 am to
quote:

The dollar is spiking! Inflation is out of control!

Both are absolutely possible and happening. Your little brain can’t fathom that those aren’t opposites like you were taught
Posted by PhiTiger1764
Lurker since Aug 2003
Member since Oct 2009
14464 posts
Posted on 7/13/22 at 8:13 am to
Excuse my ignorance but can someone explain to me why the Fed won’t just immediately hike rates 300bp?

Why all of these gradual half measures?
Posted by slackster
Houston
Member since Mar 2009
91320 posts
Posted on 7/13/22 at 8:13 am to
quote:

nflation is still running rampant with no signs of a peak - Fed measures haven’t proven to knock it down yet


That’s not true at all…



Commodity prices are down 16% in the last month.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
32704 posts
Posted on 7/13/22 at 8:14 am to
An immediate 300 would tank the economy and the markets. You gotta give the economy time to adjust with gradual changes, but also need to balance with killing inflation
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11843 posts
Posted on 7/13/22 at 8:14 am to
I’m sure it’s probable but that’s not happening. It’s an imbalance of supply and demand in energy and fuel and it has been for almost 1.5 years. Good old fashioned price increases. Has nothing to do with the money supply so it can’t be inflation. Too bad the mob is driving political actors into making it worse.
Posted by CollegeFBRules
Member since Oct 2008
25321 posts
Posted on 7/13/22 at 8:15 am to
quote:

Doom

Dollar exploding in value going to kill earnings and market will tank
Fed has to consider a 100bp hike now, 75bp is guaranteed
Inflation is still running rampant with no signs of a peak - Fed measures haven’t proven to knock it down yet


Take a breath, brother. Another rate hike and you’re going to see things stabilize. Corrections are painful, but we need one. This isn’t the end of the world.

Mortgage rates are not what they were in the 70s / 80s, so comparisons to 40 years ago need to go back and look at everything that was happening back then. We aren’t there, and even if we were, it still wouldn’t be the end of the world. We need the pain to correct the failures of the spend whores in Washington.
Posted by thunderbird1100
GSU Eagles fan
Member since Oct 2007
71520 posts
Posted on 7/13/22 at 8:15 am to
quote:

Excuse my ignorance but can someone explain to me why the Fed won’t just immediately hike rates 300bp?



They dont want to crash the market and create a quick recession.

It's a delicate balance of finding the rate hikes that will slow down inflation but also not cause the economy to tank. The problem is they waited far too long to start the rate hikes. They didnt start raising the rate until March of this year despite inflation already running over 5% by summer 2021. Their target inflation is always around the 2-2.5% range. They claimed they were afraid to raise rates last year in fear of hurting a recovering economy calling the inflation "Transitory". Turns out it wasn't.
This post was edited on 7/13/22 at 8:19 am
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