from Stansberry Research
‘The Cost of Kamala’: Donald Trump Blasts Skyrocketing Food Prices Hurting Americans
by Amy Furr
Breitbart.com
Former President Donald Trump on Tuesday highlighted the inflation plaguing Americans under Vice President Kamala Harris’s (D) leadership.
In a social media post, Trump compared food prices during his presidency to those under President Joe Biden (D) and Harris, citing the cost of coffee, salmon, potatoes, milk, ham, chicken, cheese, and eggs.
The former president deemed it “The Cost of Kamala” and told social media users that coffee under Trump was $6.99 but now it is $9.99.
Grocery basics such as eggs were $1.99 under Trump but are currently $4.99, according to his post:
Based On Today’s Report, Powell Should Be Biting His Lip On Inflation
by David Haggith
GoldSeek
The rise in inflation that I’ve said we could see by end of summer, continues to look increasingly likely to emerge soon and not like it is going to cut Chairman Powell’s rate cut a break. The US manufacturing report came in at a 15-month low, signaling the economy is not as rosy as indicated.
PMIs disappointed in the early September print with both Services and Manufacturing falling.
Manufacturing actually fell way off, while services put in an inconsequential (so far) blip of a dip:
Fed Governor Bowman Explains Dissent On Rate Vote, Says She’s Worried About Inflation
Fed Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week’s half percentage point interest rate reduction.
by Jeff Cox
CNBC.com
Federal Reserve Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week’s half percentage point interest rate cut as she worries that inflation could reignite.
Bowman was the lone dissenter from the Federal Open Market Committee’s decision to lower benchmark interest rates for the first time in more than four years. No governor had dissented from an interest rate decision since 2005.
In explaining her rationale, Bowman said the half percentage point, or 50 basis point, reduction posed a number of risks to the Fed’s twin goals of achieving low inflation and full employment.
The Fed Cut the Interest Rate to Bail Out the Treasury
by Daniel Lacalle
Mises.org
The Federal Reserve decided to cut rates by 50 basis points despite what Chairman Powell considers “no risk of a recession or downturn,” a “solid economy,” and a “strong job market.”
After ignoring the impact of monetary aggregates and the warning signs of inflation, the Federal Reserve has breached its price stability mandate for three consecutive years, preferring to prioritize liquidity injections, i.e., printing money, to the recovery of the currency’s purchasing power.
The “higher for longer” policy only lasted eighteen months. Furthermore, the latest reading of the Chicago Fed National Financial Conditions Index indicates extremely loose conditions. In fact, the Fed has never cut rates by so much when financial conditions have been this loose.
This Chart Shows Gold vs. the Stock Market Since Bernanke’s Famous ‘Helicopter Drop’ Speech
Morgan Stanley says lower-quality stocks and commodities will struggle during heavy fiscal spending
by Steve Goldstein
Market Watch
Then, Bernanke noted, gold traded at $300 an ounce. Last week, gold reached a new record high of $2,619.90 an ounce. That is better than the S&P 500 since Bernanke’s speech and most other assets as well.
Dow Jones Rises as Inflation Report Looms; GM Slides On Downgrade
by Scott Lehtonen
Investor’s Business Daily
The Dow Jones Industrial Average and the other major stock indexes rose modestly Monday after factory data, while a critical inflation report looms later in the week. An early mover on the stock market today was General Motors (GM), which dropped on an analyst downgrade.
After the opening bell, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite moved up 0.3% in early trading.
Early Monday, the 10-year Treasury yield ticked higher to 3.77%. Oil prices rose, with West Texas Intermediate futures trading around $71.15 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) was up 0.3%, as the SPDR S&P 500 ETF (SPY) moved up 0.2% after the open.
Interview: Market Jitters as Fed’s Rate Cut Heightens Inflation Concerns, Says Analyst
by Xinhua
News.cn
Even if the United States reaches an inflation rate of 2 percent, the purchasing power of the public, household inflation, and the overall purchasing power of money would not return to previous levels, a Turkish analyst said.
ISTANBUL, Sept. 24 (Xinhua) — Market participants remain uneasy as the U.S. Federal Reserve cut interest rates by 50 basis points on Wednesday, amidst growing uncertainties in the U.S. economy, said a Turkish analyst.
Typically, when markets receive more than expected — like a 50-basis point cut instead of a 25-basis point — it should generate positivity, Murat Tufan, an analyst with the EkoTurk broadcaster, told Xinhua in a recent interview.
Why China’s Economic Slowdown is Unlikely to Affect U.S. Inflation
by Josh Lipton and Madison Mills
Yahoo! Finance
Unlimited Co-founder, CEO, and chief investment officer Bob Elliott joins Josh Lipton and Madison Mills on Market Domination after last week’s rate cut to discuss some of the top stories of the day, including concerns about the Chinese economy and rising gold prices, breaking down what investors need to know.
Elliot tells investors the state of China’s economy is “not likely to have a meaningful impact on US inflation numbers ahead; when it comes to growth, the US economy is pretty insulated from Chinese growth and not likely to have much of an impact.”
In regard to the impact on oil prices, Elliot says, “We’re really in this range here on oil (CL=F) where we’re not likely to see meaningfully more elevated oil prices, nor meaningfully lower oil prices ahead.
Days After Rate Cut, S&P’s Flash PMI Sees Rising Inflation and Exhorts the Fed to “Move Cautiously” with “Further Rate Cuts”
by Wolf Richter
Wolf Street
“The “reacceleration of inflation” suggests “the Fed cannot totally shift its focus away from its inflation target.”
Underlying inflationary dynamics are picking up steam, after having cooled a lot. Today, S&P’s preliminary Flash US Composite PMI (Purchasing Manager Index), based on data collected from September 12 through 20, entailed multiple warnings about the Fed’s future rate cuts, in light of reaccelerating selling-price inflation in both the services and manufacturing sectors, and in light of input-cost inflation in services.
Stagflation Economy: U.S. Manufacturing Collapse Remains as Stagflation Rules the Day
from King World News
As we kickoff another trading week, the US manufacturing collapse continues as stagflation rules the day.
September 23 (King World News) – Peter Boockvar: The September US PMI fell a touch to 54.4 from 54.6 with manufacturing remaining weak at 47 vs 47.9 in August, the slowest since June 2023…
US Manufacturing Collapse Remains As Stagflation Rules The Day