May US Existing Home Sales Fall -0.9% MoM, Available Inventory Increases Slightly, Median Price Up 2.8% MoM And 23.56% YoY

Fed Chair Powell will speak to a Congressional Oversight Panel today at 2pm. He released his printed statement, and mentions that inflation is usually high.

Inflation has increased notably in recent months. This reflects, in part, the very low readings from early in the pandemic falling out of the calculation; the pass-through of past increases in oil prices to consumer energy prices; the rebound in spending as the economy continues to reopen; and the exacerbating factor of supply bottlenecks, which have limited how quickly production in some sectors can respond in the near term. As these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal.

Fed speak 101. Aka, “Things got so bad, that of course prices are rising from the pit of despair.” No mention of M2 growing like a bat out of hell or Fed Mission Creep.

But how about existing home sales for May 2021? Median price for existing home sales are up 23.6% year-over-year with surging M2 money supply.

On a month-to-month basis (MoM), existing home sales median price rose 2.8% on slightly higher available inventory.

I want to think that the Congressional Oversight Panel will ask insightful questions, but that is wishful thinking. It is all Kabuki Theater.

Here is the Congressional Oversight Panel questioning Fed Chair Powell.

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