BREAKING: April PPI inflation RISES to 2.2%, in-line with expectations of 2.2%
Core PPI inflation was 2.4%, in-line with expectations of 2.4%. PPI inflation is now up for 3 straight months for the first time since April 2022. This is the highest PPI reading since April 2023. Note that revisions from last month’s PPI left people feeling it wasn’t as “hot” as initially thought on headline numbers. Source: Charlie Bilello
Recession and stagflation don't happen often in the grand scheme of things... 90% of the time we avoid them...
Source: BofA
Ahead of US CPI, it's important to note that the data point tends to weigh heavily on bond yields -- up or down.
Source: Bloomberg, Markets & Mayhem
Markets are currently anticipating the first Fed cut in September and a potential second cut in December.
This week's US inflation data could shift these expectations backward or forward depending on how the data comes in. Source: Markets & Mayhem
In 1971 the US came off the gold standard
Source: Game of Trades, Michael Burry Stock Tracker ♟
JUST IN: Argentina to print its first 10,000-peso note as a result of hyper-inflation.
Source: Radar
In case you missed it...
Atlanta Fed US Q2 GDP Now latest 4.18%, vs last 3.31%...
Shocking stat of the day by The Kobeissi Letter:
US net interest payments as a percentage of federal revenues are set to reach 34% by 2054. This means that ONE THIRD of all government revenue would be spent only to service the national debt. Over the past 8 years, the percentage has already doubled to ~15% and is at its highest in 3 decades. Meanwhile, nominal annualized interest payments have crossed above $1 trillion for the first time ever. We could see $1.6 trillion in annual interest expense by the end of the year if the Fed leaves rates steady. The US government needs lower interest rates more than anyone - i.e Fiscal policy leads monetary policy. Source: The Kobeissi Letter, Peter G.Peterson
