- 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.
For further details see:
Inflation Rises Faster Than The Fed Expected, Giving Fed Less Time Than It Needs