Inflation may be creeping higher after all

[IronLionZion]

https://www.cnn.com/2019/07/11/investing/inflation-cpi-federal-reserve-rate-cut/index.html

New York (CNN Business)The Fed may have to change its tune on inflation and potential rate cuts after a key report on consumer prices came in higher than expected.

Federal Reserve chair Jerome Powell told the House Financial Services Committee Wednesday that "there is a risk that weak inflation will be even more persistent than we currently anticipate."

But in the June Consumer Price Index data report Thursday morning, the US government said overall prices rose 0.1% in June while so-called core prices, which exclude food and energy, were up 0.3%.
The jump in core prices was the biggest monthly gain since January 2018. Core inflation is now up 2.1% over the past 12 months.

The government noted prices increased for housing, used cars and trucks, clothing, home furnishings, medical care and auto insurance among other categories.
In other words, weak inflation may not be as "persistent" as the Fed — or Wall Street — thought.

Investors still expect a small rate cut from the Fed at its next meeting later this month — but the calls for a larger move have ebbed a bit following the latest CPI data. (The Fed typically cuts rates when the economy is weak and inflation isn't a threat.)

This longest bull market in history is artificially propped up until the 2020 election. It's going to hurt when it comes down.

[watoos]

1. Yip, the market was artificially propped up by Trump.

The tax cuts, the repatriated offshore tax money, the loosening of regulations have created party time for the market. Trump wants the Fed to lower interest rates to lower the dollar to stimulate trade.

Has anyone seen anyone from the M$M talk about our exploding deficit/debt?

The problem is that only 25% of our population is invested in the stock market in one way or another.

[IronLionZion]

2. Kick for today