Core inflation “has not really moved down. It has not reacted much to our rate hikes. We’re going to have to keep at it.”
Powell has been talking about this. Energy cannot plunge forever.
Markets surprised by hike and hawkish tilt on fears about inflation expectations and surging labor costs without productivity gains.
Not encouraging: core PCE price index refuses to come down, has moved sideways since July last year.
“We are entering an EBITDA recession”: S&P Global Ratings.
Food Inflation Raged at 19%. But energy prices plunged. In response, UK government bond yields spiked, pricing in higher BOE policy rates.
Debacle on the Inflation Front: The Fed’s victory lap about having licked rent inflation was premature.
Bank of Japan clings to negative interest rate policy and yield curve control as inflation spreads across the economy.
Turned upside-down since late 2008 with QE and interest rate repression, it still hasn’t been turned right-side up.
Inflation Whac A Mole. Housing Inflation may be peaking at 8%+, but rents re-accelerated.