PLW - Inflation Flying In Hotter Than Ever
- Those who went along with the Fed’s inflation-is-temporary-and-going-per-plan narrative are stunned by the data they now see coming in.
- The inflation data surprises index reveals whether inflationary data is higher or lower than economists expected. It’s hard to claim that the base effect from last year’s COVID crisis resulted in more surprises to economists, given those economists were all trying to claim inflation was going to rise due to a base effect before April’s hot print.
- Behind the scenes of this monetary deluge, the Fed’s essential response to the overnight reverse repo crisis keeps soaring higher, meaning the Fed is having to suck more and more money out of bank reserves.
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Inflation Flying In Hotter Than Ever