Fed’s favorite inflation gauge spikes, consumer spending holds up solidly.
Salaries, wages, benefits: a combustible fuel for the Fed’s tightening machine.
Inflation day didn’t disappoint. “Underlying Inflation” hottest since July 2006.
“We are seeing an unprecedented rise in logistics costs,” General Mills CEO
“Pricing power has erupted…”
But something funny happened on the way to the headlines.
Chorus gets louder. But no one will be ready for those mortgage rates.
Even uber-doves are now looking over their shoulder.
Inflation expectations now exceed the Fed’s target.