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CPI will show inflation, but at what rate?

[edit] You can view the CPI report here by clicking the graphic…

This morning’s CPI release is much anticipated by your trusty blog writer and more widely and for different reasons, the mainstream media.

Here is Fox news (which I can bare to look at every once in a while, albeit not seriously, now that they’ve rotated from Trump pumping to Biden bashing) highlighting how ole’ sleepy Joe “can taste it” with respect to the public’s inflation angst, but “it’s not because of spending”. Before Joe’s sleepy comment, we are treated to lunatic Larry, who somehow persists as a supposed economic authority.

Oh wait…

Okay Joe, it’s not because of spending. It’s because of the money creation by the Fed during the acute phase of the pandemic, economic lockdowns and tanking stock markets. That is what it is because of. But it sure isn’t helped by the spending or restrictions on the US Energy industry (while we all too willingly buy ‘dirty’ energy from elsewhere around the globe).

Anyway, point being that inflation is headline news and the public is being fed whatever politically biased view of it either side of the aisle feels is to its benefit to feed them. But at 8:30 ET comes the CPI report and the futures are buying the news, whatever it will be. Sure, it will be news of still-virulent inflation, but as noted in the link at top “One wonders at what point the inflation comps may start to fade, YoY.”

With the bounce in pre-market the S&P 500 (ES) is postured to buy whatever news comes out of it. But if there is even the slightest fade in the rate of CPI inflation it could set off the bleak sentiment tinder box. On the other hand, with the machines buying the news already, a flaming hot CPI could undo this morning’s contrarian bounce attempt in no time.

Separately, a subscriber sent me this with the expectation I’d get a laugh out of it. Ha ha ha, but I am not really laughing because I’d been badgering for the Fed to toughen up and hawk the markets for months before the guy in the picture finally opened his yap too late and tanked the market while I was on a plane to my first vacation with my wife in years.

Fed officials suggest that in hindsight they should have acted more quickly.

Eff you. The indicators were what they were at the time and we, just a blog writer and some readers, knew it because of charts like this one. Why didn’t the eggheads know it? Or why are they pretending they didn’t know it? Here is my chart from February 15, demanding the Fed take action. February effing 15th! Eggheads.

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