Home Investing and Finance Wipe Out! $32 TRILLION In Inventory Worth Wiped Out (US Core Deflator...

Wipe Out! $32 TRILLION In Inventory Worth Wiped Out (US Core Deflator Rises To 4.9% Prompting Taylor Rule Fed Goal Price Of 9.65%, We Are At present At 3.25%)

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by confoundedinterest17

Wipe out!

$32 TRILLION of global stock value has been wiped out since December 2021.

Today’s core PCE deflator reading of 4.9% YoY shows that the inflation surge is not over. With a core PCE deflator of 4.9%, the Taylor Rule suggests that The Fed Funds Target Rate should be at 9.65%, far below its current level of 3.25%. So, IFF The Fed is following any sort of rule, rates should continue to soar.

And if we use headline inflation of 8.30% YoY, the Taylor Rule suggests hiking the target rate to 14.75%.

After yesterday’s dismal Q2 report of -0.6%, I fully anticipate a recession. Ain’t this a kick in the … head.

 

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