IBTK - Inflation Rises Faster Than The Fed Expected Giving Fed Less Time Than It Needs

• With the consensus view being that inflation for June would print at about a 4.7% increase year on year, inflation barreled in at 5%.
• The Fed prefers a different gauge for determining its economic policy - their “core” inflation rate - and that number came in at 3.8%, which is the hottest it has been in more than a quarter century.
• The reverse repo crisis broke out because the requirement for raising capital was reinstated in March. The Fed says it is not a crisis, but is going according to plan.
• The Fed maintains it must keep the QE up for the economy’s sake, but the economy is not utilizing the money.

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