PPI final price demand was reduced to -0.2% in May, seasonally adjusted. Compared to last month PPI, which was at 0.5%, this is good news. However, Final demand is still up by 2.2%, unadjusted, from 12 months ago. You can find the report here. The decrease for the final price demand for the month of …
Tag Archives: inflation
CPI remains unchanged for May 2024
Keep this in handy, Consumer Price Index (CPI) is not “inflation”, it’s a measure of inflation. The higher the inflation, the lower the purchasing power of the currency, which means it cost more to buy a product or service. You can see the report here. Remember, this is not seasonally adjusted. For the month of …
Core PCE (Personal Consumption Expenditure) decrease to 0.2% for April 2024, better than last month 0.3%.
PCE deflator is describe as the Fed favorite inflation signal. So, for the Fed to see the core PCE decrease to 0.2%, excluding food and energy, will be considered a victory (hint: it’s not) as it’s the lowest increase of PCE for the current year. However, from the same month one year ago, PCE price …
Fiscal Stimulus is Still Loose
If you looked all around the news, I am sure you heard that Wall Street is screaming for rate cuts because credit is tight and needs to be loose again. However, on May 10, 2024, national financial conditions have been loosed, it sits at -0.53 (negative value means quantitative easing while positive value means quantitative …
Consumer Price Index (CPI) came slightly below expectations
As you can see here. Expectations for CPI range from 0.3% – 0.4% MoM. CPI came at 3.4% (0.34%) MoM, slightly below the 0.4% expectations. Not seasonally adjusted: Food, overall, came at 2.2%. The only food price to go down was dairy and related products -1.3%. Eating out/takeout increased by 4.1%. Energy went up by …
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Producer Price Index came hotter than expected
You can find the chart here. Goods, energy, service and trade went up. Goods up by 0.4% compared to last month (March) which went down by -0.2%. Energy went up by 2.0% compared to last month (March) which was -1.3%. Service went up by 0.6% compared to last month (March) which was -0.1%. Trade went …
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Bank Term Funding Program (BTRP) is over. Now comes the crisis.
What is bank term funding program? If you don’t remember the collapse of Silicon Valley bank crisis. Here’s a brief recap, Silicon Valley bank balance sheet tells a normal story, nothing alarming until you realized their investment. In year 2020, the Federal Reserve went on a buying spree to buy treasury bonds, the program was …
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Gold keeps going up and shows no sign of stopping
Gold price keeps going up due to the fact that geopolitical situation in the middle east could collapse at any moment, the global fiat currency going full-on printing and insatiable demand from central banks despite the fact that retail investors and public are dumping gold ETF. For any gold investor(s), gold is partying like it’s …
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The fiscal stimulus has been loose since May 8, 2020
For all the hoopla and noise about the federal reserve needing to loosen their quantitative tightening (QT) for the last 2 years, the US economy has been on the quantitative easing (QE) since May 8, 2020. Source: Federal Reserve of Chicago. You can find the graph here. As of April 19, 2024, the financial condition …
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REPO Act and the consequences of it
REPO Act is essentially to steal the assets of Russia that are held in United State of America to Ukraine. This will send shockwaves to any foreign investors that have investments in the US economy because as soon as the current administration sign it into law, which look to be imminent, foreign investor will flock …
The RedBlueprint 