The June CPI and PPI reports both came in higher than expectations. The good news is core CPI is decelerating. The bad news is both core sticky price CPI and Owners' Equivalent Rent, which is about one-third of core CPI, are rising rapidly.
These readings confirm the market's expectations that the Fed will continue to tighten until something breaks. In effect, the Fed is behaving like the proverbial bull in a china shop.
The full post can be found here.
How the Fed is acting like a bull in the china shop
July 16, 2022 at 14:01 PM EDT