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

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They have 1/2 a generation of retirees and future retirees, including themselves, that they have to consider, too, not just those of us with 20-40 more years in the market.

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I’m pretty sure the Fed’s purpose in life is not having to protect people’s retirement. They should have let things correct themselves back in 2008 but the banks were “too big to fail”.

It’s time to pop this bubble before it gets any larger.

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The Fed provides the country with a safe, flexible, and stable monetary and financial system. The Fed's main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.

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Oh that's probably a huge chunk of what's happening. I'm seeing some +/- $50k drops. Some have been gradual to add to that and some have been big cuts.

Some a-hole in Old Metairie bought a house in 2019 for $740,000. Didn't list major renovations in the description if they did them. Listed for $1.4 initially and now down to $1,275,000. Some people lost their fricking minds with home valuations. And all the bathrooms upstairs need gut jobs. Just the downstairs is nice.

PPI hot

Assuming CPI trails PPI?

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Inflation hit hard at the wholesale level in June, as producer prices surged a near-record amount from a year ago due to a big jump in energy costs, the Bureau of Labor Statistics reported Thursday.

The producer price index, a measure of the prices received for final demand products, increased 11.3% from a year ago, the highest reading since the record 11.6% in March.

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More good news this morning

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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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What they're doing now versus something like you ask about is the difference between landing a plane a little aggressively and just going nose-first into the tarmac.

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With Wholesale being the highest since March, you have to think that is going to offset the gas decreases this month. Prob come in similarly in August for the CPI.

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But like March, both the increase in CPI and PPI are correlated with historically large increases in energy prices. Core PPI actually came on lower than expected, so I don’t think this will have as much downstream impact of the energy increases later on since it’s happening concurrently.

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With Wholesale being the highest since March, you have to think that is going to offset the gas decreases this month.

Prob come in similarly in August for the CPI.

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Absolutely. I'm already guessing July will come in around 9.3%-9.4% with August remaining around that point.

The reason I think August holds steady is that the one-two punch at the end of July (from the Fed raising rates another 3/4 and the advanced Q2 numbers showing we are officially in a recession) is going to cause many businesses to shite themselves and start retracting. This means rising jobless claims but also less spending (especially since many have already been hitting the credit cards pretty hard in order to maintain their spending habits throughout the inflation we've already seen) so inventories should catch up.

There's still a LOT of things which could come into play though (Russia expands its war to include a NATO/EU country, or calls it off altogether, Biden puts even more (or shocks everyone by reducing) restrictions on domestic O&G, etc).

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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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the global elite and political class prefer inflation to depression