How insanely overstimulated in the US economy by The Federal Reserve? Today’s red-hot inflation report of 6.2% YoY implies a Fed Funds Target rate of … 14.94%!! According to the Taylor Rule model, The Fed Funds Target rate should be almost 15%.
If we use CORE inflation (that is, CPI less food and energy), The Fed’s Target rate should be “only” 11.10%.
I feel like I am watching re-runs of Gilligan’s Island with Biden as the Skipper and Powell as Gilligan. Thurston Howell III and his wife lovey are the US Congress and Janet Yellen is the Professor. Case in point? REAL average hourly earnings YoY fell to -1.2% under the Gilligan’s Island leadership in DC.
Biden Starts To Freak Out About Soaring Inflation, Orders Economic Council To “Reduce Energy Costs”
This economic council?