Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Why There May Still Be a Long Road Ahead on Inflation
https://moneymorning.com/?p=1205560
Required Please enter the correct value.
Twitter
Stocks: BIDU, HIMX, ILMN, OMER, SIX, TSLA

Why There May Still Be a Long Road Ahead on Inflation

By Garrett Baldwin, Executive Producer, Money Morning • August 4, 2022

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Garrett BaldwinGarrett Baldwin

I'm running behind today. The dog got out of the yard and took us on yet another adventure across the Water District of Bonita Springs, Florida.

So, my time typically left writing and analyzing the markets is limited, and I have to prepare for Money Morning LIVE as I'm on at 8:30 am EST.

I will say that the situation around inflation has just hit a new phase.

Not only has the Fed mismanaged it, but we now also have "Ivory Tower" language coming from officials. On Wednesday, San Francisco Fed Bank President Mary Daly offered a Marie Antoinette statement for the ages...

It's Good to Be Wrong

For being so wrong about the management of the U.S. economy, you get a nice cushy academic job that leads to a salary of $422,900 per year. That's the life of Mary Daly. She can't comprehend the impact of inflation on Americans... because she doesn't feel like inflation is there anymore...

In an interview with Reuters yesterday, she said: "You know I have to say that I live ... I don't feel the pain of inflation anymore. I see prices rising, but I have enough that I can make substitutions, that I can do things. So I'm not immune to gas prices rising, food prices rising. I sometimes balk at the price of things," she said. "But I don't find myself in a space where I have to make tradeoffs because I have enough, and many, many Americans have enough."

Well, if Americans stop putting things on credit cards, we'll have a deep recession. But if we have this attitude among people working at the Fed, we have something worse than mismanagement.

Now, Daly must have caught herself making this terrible statement - because it wasn't long after that she expressed empathy for Americans who don't have enough. She added: "So in my daily life, I see the rising prices, but I'm fine, because I have a sufficient income to make those tradeoffs. For other people, that's not the case, and those are the people that [lowering inflation] is so important for."

In the media world, most people were only focused on the first quote.

Daly is foolish for these statements, but she's also been the most wrong around policy going back to the last two meetings. She continues to advocate with slow 50-point hikes and even dissented in recent meetings.

I expect inflation to remain entrenched in this economy for the foreseeable future.

Today's Momentum Reading

S&P 500 Momentum: Green

Broad Market Momentum: Green

Momentum is Green. The S&P 500 is now back at its June highs and is looking to push through the 415 level on the SPY - the index's tracking ETF.

Chart of the Day: But the Job Market is Strong

I've had multiple conversations with people in Washington, pretending we are not in a recession.

"The labor market is strong..." they say.

Cool. Here's a chart from Jim Bianco that shows the three high inflation-fueled recessions of the 1970s. As you'll see... all of them started with strong labor markets. OMG... EVIDENCE THAT THESE PEOPLE ARE WRONG!

It will require a 1 million harmful jobs print for these people to admit basic economic reality. The July print for jobs should be positive... estimates are 250,000 new jobs.

I'm expecting a BIG variation here. Either at 110,000 or over 345,000, which would confuse the market...

Thursday's Schedule

  • Tesla (NASDAQ: TSLA) holds its shareholder meeting. Expect a lot of questions about its Chinese operations and even Elon Musk's battle over Twitter.
  • Unemployment claims may give us a cleaner understanding of the economy's health. Last week, jobless claims quietly climbed to the highest four-month average since November 2020.
  • Earnings from Baidu (NASDAQ: BIDU), Illumina (NASDAQ: ILMN), Himax Technologies (NASDAQ: HIMX), Omeros (NASDAQ: OMER), and Six Flags Entertainment (NYSE: SIX).

We'll be talking about all this and more on Midday Momentum at 12:30 pm EST. See you there!

To catch an episode of Midday Momentum you may have missed click here to watch a REPLAY.

Join over 500,000 readers and get free daily updates on the best ways to make money. Subscribe to Money Morning.

Follow Money Morning on Facebook and Twitter.

Join the conversation. Click here to jump to comments…

Garrett BaldwinGarrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

March 28, 2023 • By Nick Black

Invest in the Future of Finance with SingularityDAO

March 28, 2023 • By Chris Johnson

The media just blamed you for the banking crisis

March 28, 2023 • By Garrett Baldwin

Anatomy of a Credit Crisis
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz