65.2 The Fed is right about inflation (this time)
———Part 2 Summary———
US producer prices surged in the month of March. But Federal Reserve chairman Jay Powell said they won’t last, that they are “transitory”. HE IS RIGHT! But the reason he gives – the covo – is not correct. No, the reason is the same one since 2007: the global, silent depression.
———Ep 65.2 Topics———
00:05 US Producer prices for the month of March increased at the fastest pace in a decade.
01:01 A similar inflationary surge in PPI occurred in 2010-12 period.
02:25 In September 2011 Ben Bernanke warned that the PPI surges at the time were “transitory”.
04:43 Bernanke was correct that base effects and commodity prices raised PPI
07:01 Good inflation is brought about by full employment and is not “transitory”.
09:12 Jay Powell also says the PPI surge is “transitory”, but he blames COVID for it.
11:32 A chart potpourri of monetary measures confirming a meek (and pausing?!) reflation.
———Ep 65.2 References———
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by the Ingmar Bergman of the pen, David Parkins