PCE Increases Modestly in June

Why would a report on a tax cut signed in 2017 need to be "new" Duh. I can most assuredly say I did not receive a 40% tax cut like the corporate gift. Until the felon gave away a 40% cut, corporations paid about 9% of Fed. revenue. Then it was cut to 6%. Care to show some facts, or anything other than your biased opinion?

 

2.4% inflation in 2018 was the average for the whole year. Inflation peaked in June and July of 2018, hitting 2.9% both months. In response, the Fed raised the rate to 2.5% by the end of 2018. The current Fed rate is more than twice as high with inflation at 3%. So the Fed would have to cut rates significantly just to be in the range it was in 2018 relative to the inflation rate.

 

Typical facts based rebuttal from the fringe. We'll await a lucid disclosure of facts to support your stance....

 

ET may not care about the globe, but I can assure you global markets don't care about ET's thoughts. Oil is a global market whether you like or care about it. And the strategic oil reserve release was a tiny drop in the bucket compared to all the oil refined, bought, and sold globally. Recognizing this doesn't make one a globalist or socialist. Just someone who actually understands oil is a global market, abs the US can't control it.

 

Precisely as expected. Nearly every statement poster made in this thread has been shown to be garbage, but it's very telling when "dead horse and no, nuff said" is his best rebuttals.

 

You simply don’t understand what’s being reported and basic math. The Fed tracks the price of a “basket of goods”. If that basket cost $100 last year, they want it to cost $102 this year, a 2% increase. But instead it costs $102.50, a 2.5% increase. Only a complete moron would think it’s proper to say $102.50 is 25% higher than their target of $102.00…. Yet here we are. The correct answer is it’s 0.5% above their target … always has been, always will be…. There is really no other way to express that thought that doesnt fail the laugh test.

 

Typically a gift is when someone gives you something that wasn’t yours to begin with.
A tax cut is never a gift unless you think the Government
owns everything. That’s maybe be the problem with your thinking.

The rest of your post while very interesting has nothing to do with your original post.

 

It's called needle movement, as in which way is the needle moving? Up or down? When Trump was in office, the inflation needle was ticking up slightly. In response, the FED raised interest rates a bit. Now, the inflation needle is dropping. And most experts agree, this will mean a FED rate drop in September.

By your way of thinking, there should never be rate increases unless inflation is above or below target. But the FED doesn't work that way. They look at which way the numbers are moving and respond accordingly.

 

Seriously? Pretty certain a discussion ends when semantics is the last retort.

 

I never said anything to the contrary. The BofA expert is the outlier. 90% of the rest think the 3% or below will continue. Time will tell.

 

It is a rate. Not a total. You don’t add the base in. Even a moron knows that. Nice try though. The stated Target inflation rate is 2%. The actual inflation rate is 2.5 or 2.6% depending on which report you read. 2.5 is 25% higher than 2. Even a moron knows that.

 

Plus it makes it sound really really bad. When inflation was at 9% it was 350% higher than the target rate!

No, normal people with common sense would say inflation, at 9%, was 7 points higher than the target rate. It's the same with interest rates. If interest rates go from 4% to 8%, you don't say the interest rate has risen 100%. You say it rose 4 points.

 

I’m not even going to argue with you anymore…. I think you understand you are wrong here and are just someone just trying to be willfully deceiving because you think saying “inflation is 25% higher than Fed wants” is scary to actual morons who can’t do math.

 

Good. Because if you don’t know the difference between inflation and the inflation rate then there is no helping you. You’re being disingenuous as usual. The Fed manages inflation by monitoring the inflation rate. They monitor it month over month and year over year.

 

You can avoid reality all you want.