Commodity Trade Mantra

All posts under ‘EconMatters’

The Real Reason the Fed Has To Raise Rates in June

If we assume the same continuous trends regarding employment, GDP, retail spending etc. that US has been producing for the last 12 months, then things are going to get real uncomfortable for the Fed and markets come the Sept FOMC Meeting. Markets should actually be begging the Fed for a June rate hike.

The Fed Waited Too Long: Here Comes Inflation

This inflation surge is going to be led by wage inflation. By the time the Fed realize that the labor market is so tight that employers are voluntarily raising wages across the board it is far too late, you are officially behind the curve as the surge in wage inflation is signaling loud and clear. The Fed will have no choice but to raise rates fast.

The Fed Misrepresenting Inflation to Justify Inept Policy

The central banks need to downplay inflation, under-report it, and find metrics that support their case of low levels of inflation in the economy. They are talking their proverbial book, justifying their policies of the last five years, and even their existence as a necessary function in the economic wheel.

The Fed Just Lost Any Shred of Credibility on Inflation

Look at the inflation data & explain why this is not an upward trend for 2014 & an unsettling trend given GDP was actually negative for Q1. What happens to inflation when GDP prints a 4 handle later this year? What happens to inflation when the strongest part of the year from a consumption & GDP standpoint comes gushing into the CPI Reports?

Hot Inflation Reports to Dominate Next Fed Meeting

We have now entered the Inflation Paradigm of the Fed`s loose monetary experiment, it is time to pay the piper for all this excessively lax money printing complacency. We all knew this day would eventually come, but nobody is prepared for the absolute carnage in the Bond Market!

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