re: Inflation hits 9.1%. Update: Wholesale 11.3%

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I’m sure it’s probable but that’s not happening.

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Use your eyes

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Has nothing to do with the money supply so it can’t be inflation.

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It does. Check the charts, there’s been rampant printing since 2009, and extreme printing since 2020. But all global currencies have experience inflation since 2020 due to heavy printing. The dollar is strong bc those other currencies are relatively weakened in comparison to the dollar - the dollar is still the standard and becoming even more so since the global belief is that the Fed will right the ship and the dollar will still be worthwhile even if other currencies are not

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explain to me why the Fed won’t just immediately hike rates 300bp?

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I would love to see them absolutely crash everything.

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I would love to see them absolutely crash everything.

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No you don’t.

Even if you were 100% against the market, had puts on the 20 year and had a stash of gold, you don’t want everything to crash.

The problem is that our politicians are horrible money managers. Just image if you ran your household budget like the federal government runs their budget.

Also, we have way too many academics at the Fed and treasury. We need less PHDs in economics and more masters of finance and accounting.

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Get ready for what happens when global markets come face to face with the Fed not being able to raise enough to combat inflation due to way too much debt and the market realizing inflation is here to stay. The dollar will begin its crash and the bond market will implode. Got gold?

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Everyone wants to believe it’s the peak, but we have zero evidence besides the drop in oil prices

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Oil and virtually all major commodities. That’s not nothing.

Anyone who thought this CPI was going to be lower had his head in the sand.

But with this crazy market, it’s hard to know how to invest. The economy is being jerked around by multiple events and policy decisions that fight one another for dominance on how the markets are affected accordingly. One pulls it up while another pushes it down. Hard to tell what the net result should be on markets as a whole much less certain sectors which have their own unique situations occurring.

Volatility is the result.

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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?

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You ever been duck hunting and your hands get frozen? Do you then say frick it and stick them in boiling water?

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Already priced into market or do we see a huge reaction…

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I think we see a reaction. I feel the market is behind

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

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That would show panic.
Doing it in stages allows for other market conditions to come into play.
Let’s say they raise 50 basis points and then the next day A large historical event takes place that could quickly change the course of trade or oil flow or other material factor that could help lower inflation.

Doing it in stages allows for this to happen

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

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Rate hikes won't fix supply chain issues actually responsible for the numbers. At best they are an indirect influence.

The Fed may be hoping that, given extra time, PotatoBrain's Administration will eventually do the right thing, and alter SC impediments. Otherwise, middle class home owners are set to be ruined financially in the bubble explosion Fed rate hikes will be used to orchestrate.