CPI 8.5% -- What should the Fed do?
The world versus father Jerome Powell. How should the Fed react in your mind? 25bps, 50bps? Is inflation going to cool off?
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great the people who printed a trillion dollars and said it wouldn't cause inflation are now going to "fix it"
I suspect a 50 bps hike. FED really needs to tame inflation before it truly runs out of control.
In my opinion, I think FED should have rose 100 bps and gotten us to 2-2.5% by June this way it gives us some more breathing room. They want to have a soft landing but I don’t believe that was the best decision. In addition with the start of QT liquidity is going to be sucked out of the market. Key moving forward will be data that comes out.
Eventually I see rates rising above 3% and then we are going to have to cut them again. To be determined though.
Pretty brief and short thought process but would love to hear what everyone else has to say.
Agree. Scary part is I'm not sure how much several 50bps hikes will tame inflation since real rates would still be heavily negative. CPI has some tailwinds as well when it comes to inflation. "But I want to focus on the housing component of CPI, which constitutes over 33% of the total input...Further, I fully expect the housing component of inflation to continue to worsen considerably. That’s because, as I first pointed out half a year ago, the major house price indexes - the FHFA index and the Case Shiller index - lead owners equivalent rent by roughly 12 to 24 months". People are arguing about food and energy and auto prices, but those combined are still weighted less than the housing component, which is "only" up 5% YoY right now as it lags timing-wise.
http://bonddad.blogspot.com/2022/04/march-consumer-inflation-part-2-i-t…
Fed should let inflation run wild to the point that lower class and middle class people can’t afford anything and let them die out.
After that, us Investment Bankers will be the only ones left and can frolic in the glory of being The Remnants
What the fuck is wrong with you
Clearly (hopefully) satire, but on wso ya never know
the fed shouldve done something far earlier but instead pushed the narrative that iNflAtiOn iS TrAnSitOrY
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