{"id":62029,"date":"2022-02-26T08:24:15","date_gmt":"2022-02-26T13:24:15","guid":{"rendered":"https:\/\/olduvai.ca\/?p=62029"},"modified":"2022-02-26T08:24:15","modified_gmt":"2022-02-26T13:24:15","slug":"even-the-feds-lowball-inflation-measure-goes-woosh-fodder-for-50-basis-point-rate-hike-in-march","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=62029","title":{"rendered":"Even the Fed\u2019s Lowball Inflation Measure Goes WOOSH: Fodder for 50-Basis-Point Rate Hike in March"},"content":{"rendered":"
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Even the Fed\u2019s Lowball Inflation Measure Goes WOOSH: Fodder for 50-Basis-Point Rate Hike in March<\/a><\/h3>\n<\/header>\n
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The most reckless Fed ever is still just watching \u2013 and fueling \u2013 the consequences of 23 months of policy errors as the Inflation Monster gets bigger and bigger.<\/strong><\/p>\n

The Fed\u2019s official yardstick for inflation, the \u201ccore PCE\u201d price index, which excludes food and energy and is the lowest lowball inflation measure the US government produces and which understates actual inflation more than any other inflation measure, spiked by another 0.5% in January from December, and by 5.2% year-over-year, the worst inflation spike since April 1983, according to the Bureau of Economic Analysis today.<\/p>\n

The Fed\u2019s official and inexplicable inflation target is 2%, as measured by this lowest lowball inflation measure. And now even this lowball measure is\u00a02.6 times<\/em>\u00a0the Fed\u2019s target:<\/p>\n

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But back in 1982 and 1983, inflation was on the way down; now inflation is spiking to high heaven. Back in 1982 and 1983, the Fed\u2019s policy rates were over 10%; now they\u2019re near 0%.<\/p>\n

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