Inflation expectations reach 20-year highs; Powell may soon face a Volcker-style pivot

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Inflation expectations back to two decade highs.

Two years of rate hikes unraveling as Powell will be forced to do a Volcker pivot sooner than later. pic.twitter.com/pHYM4Q5Mjq

— Mac10 (@SuburbanDrone) November 6, 2024

The World ex-U.S. just failed at the 50 dma for the first time since August. pic.twitter.com/hlD7F41nBM

— Mac10 (@SuburbanDrone) November 6, 2024

We've been warned. pic.twitter.com/On6pMZNMtx

— Mac10 (@SuburbanDrone) November 6, 2024

Inflation has been an incumbent-killer everywhere. The U.S., it turns out, was not an exception. t.co/rOKpcGBK5F

— Greg Ip (@greg_ip) November 6, 2024

"Gold has made 39 new highs, the second highest annual tally on record."@GOLDCOUNCIL pic.twitter.com/jfqsHO7uuF

— Daily Chartbook (@dailychartbook) November 6, 2024

Further to the earlier post, US government bond yields have continued to increase (with the 10-year now trading at 4.45%).
As also illustrated below with the move in 2s-10s, the curve is steepening.#economy #markets #bonds pic.twitter.com/oOc5ok87z9

— Mohamed A. El-Erian (@elerianm) November 6, 2024

Young people can no longer afford to buy a home:

The typical homebuyer age has hit a new record of 56 years old, according to the NAR study for transactions between July 2023 and June 2024.

This is compares to the typical age of 45 years old seen in 2021 and 39 in 2000.

Over… pic.twitter.com/08CgVnJ32b

— The Kobeissi Letter (@KobeissiLetter) November 6, 2024

The financial strain on American households is intensifying in 2024, with essentials surging in price and debt levels climbing:

Food Inflation: Food prices have jumped 22% since early 2021, with some items, like eggs, skyrocketing by 87%. Basic groceries are becoming increasingly unaffordable for many.
Auto Insurance: Rates have surged 47%, making car ownership more burdensome for consumers.
Gasoline Prices: Though gas prices have recently dipped, they are still up 16% since 2021.
Debt Delinquencies: With the delinquency rate at 2.74%, the highest in nearly 12 years, consumers are showing signs of severe financial stress.
Consumer Price Index (CPI): Year-over-year, the CPI rose 2.9% as of July 2024, signaling that overall inflation remains stubbornly high.
Housing Costs: Rent and home prices continue to rise, with certain metro areas experiencing particularly sharp increases. The housing market remains a major strain on budgets.
Utility Costs: Electricity costs are up 28%, adding to monthly expenses as people face rising energy bills.
Wholesale Prices: A slight increase in wholesale prices points to ongoing supply chain pressures feeding inflation.
Consumer Sentiment: Confidence remains low as households grapple with elevated living costs, with many worried about affording essentials.