The Q1 GDP numbers are out for the US. The GDP price index QoQ is up to 4.3%, the fastest growth since 1990 and Fed Chair Alan Greenspan.
Higher prices combined with nagging continuing jobless claims (twice as high as before the 2020 March Covid outbreak: 3642k versus 1705k in February 2020) points to a puzzling riddle, especially when personal consumption is up 11.3% QoQ …
And the job market is smoking hot.
The riddle is … why is The Fed continuing to keeps its foot on the monetary accelerator? Stated differently, why is The Fed continuing to pump Snake Juice into the economy when jobs are a plenty and price growth is the highest since 1990?
Not to mention near dead M2 Money Velocity, a crippling decline in wage earners purchasing power of the dollar with staggering growth in Fed purchases of Treasuries and Agency MBS.
Mr Powell, we are ready for Fed normalization.
