January CPI ticks up .3%, market reacting predictably in full submission to the great and powerful Fed of Oz
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We have been discussing the possibility of a rise in inflation signaling in NFTRH and occasionally publicly as well. For example, the 10-2 yield curve has been steepening under inflationary pressure.
Yield Curve Steepener Thus Far Inflationary (1.25.24)
I have also been personally considering whether at some point the inflationary pressure could flip the market’s full confidence in the Fed, as implied by its cowering before the great and powerful monetary regulatory authority every time a signal crops up implying ‘hawkish’. But that bubble is intact. The confidence bubble…
It’s a Bubble, and It’s Intact
If confidence were not intact, the market would be saying ‘screw you, you created this inflation problem to begin with, so why should we submit to every utterance out of your rear orifice as you try to clean it up?’
Confidence. Intact.
Anyway, I’ve been considering whether the anti-USD inflation trades (commodities/resources and the regions that produce them) might actually attempt a prison break from this steel trap mindset. But thus far, nope, not happening.
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