The post Inflation on track for 1970s repeat; did the Fed make a mistake? appeared on BitcoinEthereumNews.com.

According to global capital markets commentary firm Kobeissi Letter, the Fed made a huge mistake in initiating an aggressive approach to interest rate cuts, which began in September. The publication shared charts showing a similar spike in interest rates in the 1970s, drawing comparisons with the current inflation rate.  The market commentary pointed out that the core inflation rate has remained above 3.0%. Data released by the U.S. Bureau of Labor and Statistics for the Consumer Price Index in October showed that core inflation remained at 3.3%, the same as in September. Consumer prices for urban consumers rose by 0.2% for all items, including food, energy, and shelter, similar to the past three months. The current record places the CPI on all items at 2.6%, up from September’s 2.4%.    CPI, less food and energy, rose by 0.3% in October, the same as in August and September. The index for shelter was notably one of the highest, rising by 0.4%. Other items that rose significantly were airline fares, used vehicles, medical care, recreation, and shelter. Cheaper items include household furnishings, communication, and apparel.  The Bureau of Labor and Statistics is yet to release PCE data on November 27. The PCE index depends on the CPI and producer price index.  S&P 500 reacts to the October inflation data Last week, stocks began reacting to this. 8 days ago, we took shorts in the S&P 500 on our premium member private feed as seen below. While everyone was bullish, we got ahead of the drop. Subscribe at the link below to access these real-time alerts:https://t.co/SJRZ4FrfLE pic.twitter.com/9ZNF6Enlq7 — The Kobeissi Letter (@KobeissiLetter) November 16, 2024 Despite a slight rise on Wednesday, top stock indices, including the Nasdaq Composite, S&P 500, and Dow Jones, dropped later.  On Wednesday, the Dow Jones was near even, while…

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Filed under: News - @ November 17, 2024 2:20 pm