US Core “Inflation” Falls To 2.1% From 2.4% Despite Massive Fed Intervention

The G-7 Central Banks have gone wild lowering their target rates and increasing balance sheet purchases.

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The US “inflation” numbers for March

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Despite fears of runaway, Jimmy Carter-style inflation, core inflation actually fell to 2.1% YoY.

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One of the culprits? Declining airline fares and lodging away from home (courtesy of MacroMarkets). This is similar to the post 9-11 recession issues.

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The US Inflation Swap Forward 5Y5Y is only 1.9160%.

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And Treasury Inflation Protection Securities (TIPS) continue to have negative yields.

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Of course, no country does inflation like Venezuela and Argentina!

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Is The Fed turning liquidity into cottage cheese?