Even by the deeply flawed and misleading Consumer Price Index (CPI), inflation is at the U.S. Federal Reserve's target. By other measures that more accurately portray inflation, it is well above target.
The Fed will not be deterred from continuing to tighten, continuing to remove money from the system, just because of the silliness that "CPI missed expectations."
It's still at least 2%… and it's heating up.
Furthermore, we know beyond a shadow of a doubt that, as the Fed raises the federal funds rate target, it will only stimulate more inflation. The Fed will always be behind the curve, because the Fed is always back there pushing the curve ahead.
Every time it raises the federal funds target rate, the Fed signals to the decision makers in the U.S. economy that it expects more inflation, and consumers and businesses behave accordingly. I showed you the history of that a couple of weeks ago; the charts don't lie.
And the fact is that we really have more – much more – inflation than they're telling us.
This isn't a mistake, it's not a miscalculation.
Rather, it's a deliberate obfuscation, and today, I'm going to show you exactly what the Fed leaves out (and what that means for you).
Join the conversation. Click here to jump to comments…
About the Author
Financial Analyst, 50-year charting expert, finance + real estate pro, and market analyst; published and edited the Wall Street Examiner since 2000.
where have you been? feds cost of living index been ripping us off over 25 years. every year been written hoe feds index is wrong. how feds make changes. maybe worst President Jr. Busch is worst president ripped of Americans in Unites States. Depends on what state you live in. Example 2017 California almost 6.5 cost of living. Feds 2.2 cost of living? Only honest President Carter term may have been most accurate. Social Security should be prorated for persons who have been receiving last 25 years or more. Persons on fixed income have seen most of thier buying power decline. Prices keep going up faster than wages people going up to match prices. Come visit California San Franciso,San Jose.Alameda, and Contra Costa counties and you come here see real unreal inflation prices in following areas. I hear rumor New York and East areas are in competion.
my prior comment is not fake. I am not like news media report fake news or turn real news upside down.or not tell all story. With real estate prices very high. real estate sales persons pricing out most people out of market. what will real estate sales do next to low price housing? another unfair socialist program to honest persons who do not get subsidies. thank you.