Inflation
Jun 5, 2022 06:46:12 #
From notable market analyst Louis Navallier:
Wall Street remains obsessed with inflation. Conversations about the U.S.’s inflation problem between President Joe Biden, Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell sent investors into a tizzy this week. All of the major indices were down more than 1% through Wednesday’s market close.
The reality is that inflation may have peaked here in the U.S., but it still remains elevated. The Fed’s favorite inflation indicator, the Personal Consumption Expenditures (PCE) price index increased 4.9% year-over-year in April, down from 5.2% in March. Those numbers exclude food and energy prices – and as we all know from our visits to the pump and grocery stores, food and energy prices remain sky high. Headline PCE, which includes food and energy, rose 6.3% year-over-year in April. That’s also down from 6.6% in March.
So, the Biden administration remains obsessed with inflation and refuses to admit that its policies and agenda played a role in rising prices.
Instead, it’s looking for a scapegoat, and this week, that scapegoat was Treasury Secretary Yellen. Yellen noted that she was wrong when she stated there was a “small risk” of inflation back in 2021, as there have now been “unanticipated and large shocks to the economy” this year that have increased prices. In other words, Yellen is also passing the buck and blaming the Russia-Ukraine war, as well as ongoing supply chain disruptions, for high inflation.
No matter who’s to blame, one fact remains: Prices remain elevated, and inflation is here to stay.
Wall Street remains obsessed with inflation. Conversations about the U.S.’s inflation problem between President Joe Biden, Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell sent investors into a tizzy this week. All of the major indices were down more than 1% through Wednesday’s market close.
The reality is that inflation may have peaked here in the U.S., but it still remains elevated. The Fed’s favorite inflation indicator, the Personal Consumption Expenditures (PCE) price index increased 4.9% year-over-year in April, down from 5.2% in March. Those numbers exclude food and energy prices – and as we all know from our visits to the pump and grocery stores, food and energy prices remain sky high. Headline PCE, which includes food and energy, rose 6.3% year-over-year in April. That’s also down from 6.6% in March.
So, the Biden administration remains obsessed with inflation and refuses to admit that its policies and agenda played a role in rising prices.
Instead, it’s looking for a scapegoat, and this week, that scapegoat was Treasury Secretary Yellen. Yellen noted that she was wrong when she stated there was a “small risk” of inflation back in 2021, as there have now been “unanticipated and large shocks to the economy” this year that have increased prices. In other words, Yellen is also passing the buck and blaming the Russia-Ukraine war, as well as ongoing supply chain disruptions, for high inflation.
No matter who’s to blame, one fact remains: Prices remain elevated, and inflation is here to stay.
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