The Fed says inflation is not a problem. The latest PPI news, however, shows inflation is rising at an impressive pace.
Sure, when you take out food and energy there is no inflation. What do they expect us to do? Stay in the house and starve?
Inflation cannot decline as long as commodities are rising and the dollar keeps falling.
Bond yields are rising reflecting the risk of higher inflation. And what is bad for bonds cannot be good news for stocks.
The message of the markets is quite different from that of the Fed.
More on https://www.peterdag.com
George Dagnino, PhD
Editor, The Peter Dag Portfolio on www.peterdag.com
Since 1977
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