This is like the Samuel Beckett play “Waiting For Godot.” Except we are waiting for Jerome Powell and The Federal Reserve to do something.
December’s consumer price index (CPI) is out and its a doozy, though expected. The CPI year-over-year (YoY) rose 7% in December.
If we exclude food and energy, CPI rose by 5.5% YoY.
Thanks to Biden’s assault on the energy sector, energy prices are up nearly 50% YoY.
REAL average hourly earnings YoY? It has crashed to -2.32%.
And with 7% inflation, the Taylor Rule model suggests a Fed Funds Target rate of … 17.84%. Bear in mind that the current target rate is 0.25%.
Meanwhile, grocery store shelves remain empty like we are living in Venezuela. Bidenzuela??
Meanwhile, we are waiting for
Godot Powell to start taking action instead of jawboning.