April CPI came in at 4.2%, a rate not seen since August 2008.
The Fed has managed (so far) to keep a lid on yields, providing additional evidence that the bond market remains broken and is no longer a valid source of price discovery.The details indicate the actual number should be higher, even by the BLS’ deceptive standards. Gasoline, for instance, is listed as having experienced a 49.6% YoY increase…
The rise in both CPI and gas prices continued the high positive correlation seen over the past several years.
Cue the Fed doves, who will continue to insist that rapidly rising prices are a good thing. Wouldn’t it be nice if, just once, the MSM would ask them to explain how spiking food, gas, rent and used car prices will benefit the average American – you know, the ones they claim to care so much about?
By now, it should be obvious that the billlions being thrown at markets is intended to prop up stocks and keep interest rates from breaking out. Remember…when the 10Y broke above and then failed to hold the red TL in Sep 2018, SPX promptly began a 20% correction.
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