The last 2021 Fed meeting is Wednesday.
There are only 12 shopping days until Christmas. Turtle Doves are up 50%, French Hens are up 40%, Geese are up 57%, Unit Labor Costs for Pipers piping and Drummers drumming is up 7.1% – it's going to be a very expensive Christmas and I'd suggest sticking with the 5 Golden Rings, which are only $895 and up just 8.5% since last Christmas – barely keeping up with labor costs – and they make an excellent hedge against inflation too!
This is the inflation the Fed is only just now beginning to see and we'll see what Chairman Powell has to say about it it on Wednesday.
Calling inflation “transitory” was a historically bad move for the Federal Reserve, according to Allianz Chief Economic Advisor Mohamed El-Erian. “The characterization of inflation as transitory is probably the worst inflation call in the history of the Federal Reserve, and it results in a high probability of a policy mistake.”
“So, the Fed must quickly, starting this week, regain control of the inflation narrative and regain its own credibility,” he added. “Otherwise, it will become a driver of higher inflation expectations that feed onto themselves.”
Bloomberg had some interesting advice over the weekend: Just spend your money as fast as you can before it becomes worthless. This "advice" seems to come from observing what Agentinians are doing as their currency goes into free fall with 50% annual inflation down there. "And don't hesitate to borrow money" says Bloomberg – when you pay it back with deflated Dollars – you can come out ahead.
US Corporations have certainly taken that advice to heart, borrowing money at record levels ($1.3Tn so far this year) and they've been using that money to buy back record amounts of their own stock – so our Corporate Masters have MASSIVE bets that inflation will pay off for them down the road. They have no interest at all in "fighting"…
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