by Peter Schiff
Schiff Sovereign
Did you hear the cheering in the streets? The celebratory gunfire coming from the Federal Reserve? The champagne bottles across Wall Street being uncorked?
What’s got people so excited today is the monthly CPI report— which showed consumer prices increasing by ‘only’ 3.4% year-over-year. And core inflation, which strips out food and energy prices, increased by ‘only’ 3.6%.
That was about 0.1% better than last month, so, of course, both the Fed and the White House are doing a victory lap. Expect Joe Biden to ramble incoherently about his economic prowess any moment now.
This inflation report was all the market needed to jump right back into the fantasy that inflation is licked… and the Fed can quickly and safely start cutting rates again.