U.S. Producer Prices Increased in August by More Than Forecast (Hot, Hot, Hot!) Fed Pouring Money Into Clogged System

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Producer prices are getting hot, hot, hot!

(Bloomberg) — Prices paid to U.S. producers increased in August by more than forecast as persistent supply chain disruptions squeeze production costs higher. 

The producer price index for final demand increased 0.7% from the prior month and 8.3% from a year ago, a fresh series high, Labor Department data showed Friday. Excluding the volatile food and energy components, the so-called core PPI advanced 0.6%, and was up 6.7% from August of last year.

PPI Final Demand prices rose 8.3% YoY in August.

Given that there are shortages in the economy, why is The Federal Reserve pumping so much money into the system? It is like repeatedly flushing a clogged toilet hoping it will clear.

The correct way to clear a clogged economic toilet.

Not The Fed way of clearing clogged toilets. Pumping trillions of dollars into a clogged economic system.

The Fed’s comment on their plumbing prowess? “Come on feel the noiz!”

Because inflation is run, runaway.

Published by confoundedinterest17

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