{"id":68367,"date":"2024-05-24T18:28:09","date_gmt":"2024-05-24T23:28:09","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68367"},"modified":"2024-05-24T18:28:09","modified_gmt":"2024-05-24T23:28:09","slug":"david-stockman-on-the-continual-rise-in-the-cost-of-living-and-why-the-fed-has-no-shame","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68367","title":{"rendered":"David Stockman on the Continual Rise in the Cost of Living\u2026 And Why the Fed has No Shame"},"content":{"rendered":"<header class=\"content-header fixed\">\n<h3 class=\"entry-header content-list-title\"><a href=\"https:\/\/internationalman.com\/articles\/david-stockman-on-the-continual-rise-in-the-cost-of-living-and-why-the-fed-has-no-shame\/\">David Stockman on the Continual Rise in the Cost of Living\u2026 And Why the Fed has No Shame<\/a><\/h3>\n<\/header>\n<div class=\"content-thumb\"><img loading=\"lazy\" decoding=\"async\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" src=\"https:\/\/internationalman.com\/wp-content\/uploads\/2024\/05\/shutterstock_2094823315.jpg\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" srcset=\"https:\/\/internationalman.com\/wp-content\/uploads\/2024\/05\/shutterstock_2094823315.jpg 600w, https:\/\/internationalman.com\/wp-content\/uploads\/2024\/05\/shutterstock_2094823315-300x195.jpg 300w\" alt=\"Rise in the Cost of Living\" width=\"600\" height=\"389\" \/><\/div>\n<div class=\"addthis_inline_share_toolbox\"><\/div>\n<p><button id=\"freeAccess\" class=\"btn btn-sm btn-info popmake-6518 pum-trigger\" type=\"button\"><i class=\"fa\n\t\tfa-envelope\"><\/i>\u00a0Subscribe to\u00a0<em>International Man<\/em><\/button><\/p>\n<div class=\"content\">\n<p>Jay Powell did it again assuring the 1% that he has their back.<\/p>\n<blockquote><p>Markets recovered their poise over the last 24 hours, as investors were relieved after Fed Chair Powell stuck to his recent views on the economic outlook. In his remarks yesterday, he said that recent data didn\u2019t \u201cmaterially change the overall picture\u201d and that on inflation \u201cit is too soon to say whether the recent readings represent more than just a bump.\u201d\u00a0<strong>In addition, he reiterated that if \u201cthe economy evolves broadly as we expect, most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some point this year.\u201d<\/strong>\u00a0So that all helped to validate market pricing, which still expects\u00a0<strong>71 bps<\/strong>\u00a0of rate cuts from the Fed by the December meeting.<\/p><\/blockquote>\n<p>Needless to say, the man has no shame. And that\u2019s to say nothing of intellectual firepower. There is not even a smidgen of a case that rate cuts in the present context will help main street, and the Fed heads and their Wall Street megaphones don\u2019t actually even try to make that argument.<\/p>\n<p>Instead, they argue for rates cuts by default. If by some tortured version of the CPI (i.e. the \u201csupercore\u201d index, which eliminates 61% of the CPI items by weight) they can espy the in-coming inflation trend settling into a liberally defined vicinity of 2.00%, that\u2019s purportedly good enough to end the money-printing pause that has been in place since March 2022. Thereafter, it\u2019s back to business as usual, flooding the canyons of Wall Street with cheap credit and a new burst of financial asset inflation.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>David Stockman on the Continual Rise in the Cost of Living\u2026 And Why the Fed has No Shame \u00a0Subscribe to\u00a0International Man Jay Powell did it again assuring the 1% that he has their back. Markets recovered their poise over the last 24 hours, as investors were relieved after Fed Chair Powell stuck to his recent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[26558,2120,303,431,6228,534,13351,3650],"class_list":["post-68367","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cost-of-living-2","tag-david-stockman","tag-fed","tag-interest-rates","tag-international-man","tag-monetary-policy","tag-price-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68367"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68367\/revisions"}],"predecessor-version":[{"id":68368,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68367\/revisions\/68368"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}