Run, Runaway! February PCE Core Deflator YoY Rises To 5.4%, Highest Since 1983, As Fed Keeps Foot On Monetary Gas Pedal (Spread Between PCE Core Deflator And Fed Funds Target Rate Highest Since 1970)

Sharing is Caring!

by confoundedinterest17

Run, runaway!

February’s Core Personal Consumption Expenditures (PCE) price YoY grew to 5.4%, the highest since 1983. The spread between the PCE Core Deflator and The Fed Funds Target Rate (upper bound)

In terms of the spread, it is the highest since the 1970s.

The Taylor Rule (which Jerome Powell probably thinks is the New Jersey breakfast meat “Taylor Ham”) indicates that The Fed’s target rate should be 12.21%. This is using the Rudebusch specification of the Taylor Rule.

Now that the Biden Administration is going gangbusters on building electric cars, lithium prices are going through the roof.

See also  Already Gone! U.S. Manufacturing Index Falls to Lowest Since 2020 As Fed Signals Removal Of Monetary Stimulus (As 10Y Treasury Yield Tries To Breech 3% Barrier)

The Federal Reserve’s new theme song is “Come Feel The Inflation!”

Noddy Powell?

 

Help Support Independent Media, Please Donate or Subscribe:
Trending:
See also  [Reuters] European diesel inventories at lowest since 2008. Still importing 770,000 bpd from Russia. Real potential for higher prices.

Views: 7

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.