U.S. stock futures fell Friday morning as key key U.S. inflation data came in hotter than expected across the board.
Dow Jones Industrial Average futures fell by 380 points, or 1.1%. S&P 500 and Nasdaq-100 futures slid 1.1% and 1.4%, respectively.
The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago, the Commerce Department reported Friday. Wall Street had been expecting respective readings of 0.5% and 4.4%.
Including the volatile food and energy components, headline inflation increased 0.6% and 5.4% respectively.
MacDailyNews Take: The Fed ludicrously went to a 25-basis point interest rate way too soon. They should have hiked interest rates by 50-basis points in early February and they should do hke of 50-basis points at its next FOMC Meeting in March (21-23).
Again, when certain quarters, including the Fed, delude themselves and others that “inflation is transitory” and waste at least a year before doing a mere portion of what is necessary* (interest rate hikes), the price will be paid for being delusional and late.
Catching up will be difficult. But, hey, good luck on that soft landing. 🙄 – MacDailyNews, September 13, 2022
In January, Interactive Brokers founder Thomas Peterffy said of the U.S. Federal Reserve, “If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
Peterffy may have been too conservative. Rates in excess of 6% may be required at this point. – MacDailyNews, October 13, 2022
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
*Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
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You’re well-done… uh… watermelon… uh… wha?
Yes, it seems that U.S. Presidential Elections purchased by Mark Zuckerberg have consequences.
Some major Carteresque pain is required at first, to teach younger voters a valuable lesson, but, when Democrats are finally, rightfully cast into the wilderness for a decade or more, we’ll be able to enjoy the sequel to the The Reagan Revolution!
Thanks libturds!! You are too fucking stupid to know the damage you have caused
1) The current economic situation is not just a US problem. It’s worldwide issue caused, mostly, by the pandemic and supply chain issues.
2) Democratic administrations historically inherit a bad economy from Republicans and then turn it around. When the inevitable power switch happens, then the Republicans run it back into the ground again, while blaming “liberals” of course.
You’re being spoon feed an echo chamber diet of “blame the libs for everything that is wrong” while closing your mind to what is really happening. Open your mind a bit, think for yourself, and get your information from other sources and not just the ones that confirm your cognitive bias and you might actually learn to be less angry.
Yes, I know you and Goeb and “First Then” will absolutely fume over my post. I’ll be able to hear the typing from here as you all pound on the keyboard and send me false and/or out of context links attempting to disprove me. Go ahead, I won’t follow them.
What I don’t understand is why you let the rich continue to fool you into thinking that letting them have everything is good for you.
Agree with MDN. Quarter point was too little. It was a head scratcher at the time. Given, lots of business leaders were hand-wringing that the Fed was about to destroy the economy and that they’d raised too much too fast, as inflation effects happen 6-12 months down the road… but come on, of course they’re going to say that. It was clear to many of us that Fed would have to reverse course again after the quarter point. Not a good look.
Someone please explain to me the definition difference between “transitory”, and “temporary”?
The Biden administration tells us inflation is transitory… But that means it’s just in a transition to something else. What is it transitioning to? The answer is inflation that never ends…
One semi bright lightbulb in the media simply needs to ask the White House. “Why don’t you use the term ‘temporary’ instead of the word ‘transitory’? by using the word transitory, you are suggesting inflation is transitioning to what? If you would use the word temporary, we all know that means you believe it will end at some point and hopefully soon… but you don’t use the word temporary use transitory, so please explain what you believe. Inflation is transitioning to?
In this context, “transitory” means we will transition to more damaging economic policies from the administration. Who would have thought that printing trillions of dollars out of thin air for congresscritter’s pet projects would make inflation worse? These folks know nothing and listen to clowns like Krugman who are consistently wrong about everything.
Both temporary and transitory mean “not permanent”.
They are synonyms.
Neither word implies a transitional state.