U.S. lumber futures rallied as much as 4% to $1,541 per 1,000 board feet Wednesday, the highest ever for a most-active contract. The surge came as voracious home-construction and renovation demand sends builders scrambling to secure the wood they need. Prices have quadrupled in the past year amid the activity, catching sawmills off guard during the pandemic. The rally, which some expect could continue, is hitting pocketbooks and potentially pushing first-time homebuyers out of the market.
Of course, no one at The Federal Reserve calls this “inflation.” With M2 Money growing at 24.2% YoY and home prices growing at 12.2% YoY?
Of course, any price change can be waved away by saying excess demand and/or supply restrictions. In Fed-land, there is NO inflation. Why? Then The Fed would have to raise rates and slow down the money supply pump.
