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What's the probability CPI is lower than expected tomorrow?

Posted on 3/13/23 at 7:35 pm
Posted by Bass Tiger
Member since Oct 2014
46151 posts
Posted on 3/13/23 at 7:35 pm
I won't be surprised if February CPI is reported under .5....if this is the case there will be some discussions on whether the Fed can pause rate hikes to see what March CPI brings.


But what if February CPI is higher than January ........now what, does the Fed continue to raise rates?
Posted by cajuntiger1010
Member since Jan 2015
9248 posts
Posted on 3/13/23 at 7:39 pm to
Fed needs to pull off the bandaid and raise the rates
Posted by Tmcgin
BATON ROUGE
Member since Jun 2010
5007 posts
Posted on 3/13/23 at 7:40 pm to
All the banking mess is deflationary but
its not baked into this number
it will still be pretty high
Posted by TomShelby
Member since Mar 2023
789 posts
Posted on 3/13/23 at 7:40 pm to
Its going to be
Shelter costs make up 43% of the report and that is starting to catch up

May 10th we will see significant drop
Posted by TOPAL
Member since Mar 2010
4526 posts
Posted on 3/13/23 at 7:58 pm to
Who really knows the real numbers...
Posted by GoldenGuy
Member since Oct 2015
10884 posts
Posted on 3/13/23 at 8:00 pm to
quote:

Who really knows the real numbers...


Usually 3 months after they are due when they make corrections
Posted by Timeoday
Easter Island
Member since Aug 2020
8797 posts
Posted on 3/13/23 at 8:08 pm to
Fed has to follow the Volker model.
Posted by Nosevens
Member since Apr 2019
10335 posts
Posted on 3/13/23 at 8:10 pm to
But even 3 months later they still aren’t correct either
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
64056 posts
Posted on 3/13/23 at 8:12 pm to
They fricked everyone who bought i-bonds.
Posted by cajuntiger1010
Member since Jan 2015
9248 posts
Posted on 3/13/23 at 8:12 pm to
Reddit Politics believes a soft landing is imminent in ‘23 or ‘24. I don’t know where they get that confidence from lol
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
64056 posts
Posted on 3/13/23 at 8:16 pm to
quote:

Fed needs to pull off the bandaid and raise the rates



Wouldn't that create more banking problems with their asset ratios?

If a bank has Tbonds at 2% as an asset reserve, then the government starts issuing them at 4%, what is the liquid value of that 2% bond now? The bank's reserves have just been cut in half.

Run on the bank.

Bank collapses.

Government bails out whoever they choose to be a winner and says frick you to whoever they decide to be a loser.

Rate changes have to be gradual.
Posted by cajuntiger1010
Member since Jan 2015
9248 posts
Posted on 3/13/23 at 8:23 pm to
quote:

Rate changes have to be gradual.


I agree, But slowplaying the rate whenever inflation is still high is just causing the economic downfall to prolong become worse
Posted by GhostOfFreedom
Member since Jan 2021
11716 posts
Posted on 3/13/23 at 8:23 pm to
quote:

Fed needs to pull off the bandaid and raise the rates



And, their should be ZERO bailouts. Including paying more than the insured 250k amounts.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51685 posts
Posted on 3/13/23 at 8:28 pm to
quote:

I won't be surprised if February CPI is reported under .5


Expectations are .4 but then January came in higher than expected (which is what started driving the possibility of .5 for the next meeting) due to a jump in spending (after it had dropped in November and December).

If it's .5 or more, I think we can be sure of a .5 increase at the next meeting.
This post was edited on 3/13/23 at 8:41 pm
Posted by cajuntiger1010
Member since Jan 2015
9248 posts
Posted on 3/13/23 at 8:33 pm to
quote:

.5 increase at the next meeting.

.5 increase will make everything so interesting. I’m expecting a .25 increase
Posted by bamarep
Member since Nov 2013
51807 posts
Posted on 3/13/23 at 8:46 pm to
I don't have a clue what any of this shite means.


But it's obvious that the morons making the decisions don't have a clue about any of it either.
Posted by Dgarne2
Member since Sep 2022
600 posts
Posted on 3/13/23 at 8:59 pm to
The fed is stuck. Inflation is based on supply this time instead of low monetary restrictions. Raising interest rates does not fix the supply issue but makes it worse. They are phucked because they are not the smartest people in the room.
Posted by Trevaylin
south texas
Member since Feb 2019
5918 posts
Posted on 3/13/23 at 9:18 pm to


Based on the price of ribeyes the cpi will be up.

I do believe folks are tapped out of cash, and a huge reduction in restaurant , entertainment, and travel is happening now. Vendors will push pricing to adjust for lower volume .
Posted by Bass Tiger
Member since Oct 2014
46151 posts
Posted on 3/14/23 at 8:08 am to
quote:

Wouldn't that create more banking problems with their asset ratios?

If a bank has Tbonds at 2% as an asset reserve, then the government starts issuing them at 4%, what is the liquid value of that 2% bond now? The bank's reserves have just been cut in half.

Run
on the bank.

Bank collapses.

I think a lot of banks are holding a shite ton of treasuries yielding less than 2%.....yeah, it's that bad. It's crazy to think the "smart people" in banking didn't know or simply ignored that ZIRP/QE/deficit spending would eventually rear its ugly head as surging inflation and higher interest rates.

Government bails out whoever they choose to be a winner and says frick you to whoever they decide to be a loser.


Rate changes have to be gradual.
Posted by TomShelby
Member since Mar 2023
789 posts
Posted on 3/14/23 at 8:11 am to
quote:

CPI for all items rises 0.4% in February as shelter increases #CPI


Shelter continues to keep the report hotter than it is
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