My “funny inflation”

Resulting in “funny” headlines (with time stamps):

Barron’s 9:26 AM: “Dow Drops as Too Much Inflation Rocks Stocks.”

CNN Money 10:56 AM: “Stocks Shrug Off Inflation Data”

The core CPI was 0.3% month-on-month, higher than expected (0.2%) and the highest in two years. Since it wasn’t as low as analysts were anticipating, that “confirms” the “boom hysteria”.

David Beckworth put it succinctly:

My prediction: Fed will be emboldened to raise rates & talk up more rate hikes. This tightening will cause inflation to drift back below 2%. And Fed officials will wonder once again why inflation remains low.

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