Why do virtually all the mainstream pundits think the Federal Reserve has won the inflation fight?
Maybe it’s just wishful thinking. They want the Fed to win so it can go back to what it does best – creating more inflation with artificially low interest rates and quantitative easing.
Regardless, most of the mainstream punditry hyped the November CPI report as more positive news on the inflation front. The CNBC headline reflected the consensus – inflation “slowed” last month.
Except it really didn’t.
Are “greedy” corporations driving inflation? Could taxing billionaires solve the federal government’s fiscal problems?
According to President Joe Biden, the answer to both questions is yes.
And the correct answer is no.
The Federal Reserve has lost well over $100 billion dollars, and even when it returns to “profitability,” it will likely take over four years before the central bank is completely in the black.
And you’re going to foot the bill.
Deutsche Bank economists say the Federal Reserve will create more inflation in 2024.
OK, that’s not exactly what they said. But that is the implication of their latest forecast.
The financial crisis that kicked off in March continues to bubble under the surface.
Total outstanding loans in the Federal Reserve’s bank bailout program jumped by just over $5 billion in November.
Inflation robs you of purchasing power by driving up the price of everything you buy. You see the impacts of inflation every time you go to the store. But sometimes inflation hits you in a more subtle way that’s difficult to see – through “shrinkflation.”
I experienced shrinkflation first-hand last weekend.
The Consumer Price Index (CPI) drives markets and motivates policy, but it is nothing but speculation, estimation and wild guesses.
A recent “tweak” to the health insurance CPI reveals the formula is basically a scam.
Greenlight Capital reported a major increase in its exposure to gold as the hedge fund’s founder worries about the direction of the markets. In a Q3 letter to investors, David Einhorn expressed concern about geopolitical uncertainty, the rising price of oil, and inflation.
For the first time in several months, the Consumer Price Index (CPI) came in cooler than expected in October, supercharging expectations that the Federal Reserve can relent on its inflation fight.
But is the optimism premature?
After running the third-largest budget deficit in US history in fiscal 2023, the Biden administration kicked off fiscal 2024 with another big budget shortfall.
