re: PPI Hotter Than “Expected”

quote:

---

This was precisely my complaint. I am not bearish. I think the FED has massively screwed up on inflation. The drop back to .25 was too quick and now if they start going back to .50 the market is going to overact to the downside. They also necessarily required additional rate hikes later in the year.

---

I see that, but I don't think that's the whole picture.

Another part of this is the gi-fricking-normous liquidity enema Congress shoved up the economy's arse. Shoving over a TRILLION dollars into the economy within a month or so is going to naturally devalue a fiat currency.

And yet another part of this is the current administration's push of the "green agenda" which has no choice but to raise the cost of energy because it's so fricking much more expensive than fossil fuels. EVERYTHING is dependent on the cost of energy so the more they try to force the economy to artificially adapt to green-ness, the more they are going to increase inflation on the energy sector (thus everything else). This and continued high price of food is keeping inflation sticky.

The Fed can do only so much with the administration and Congress countering their efforts.