For the first time since April 2023, Core PPI and CPI inflation are back above 3.0%.
Even as the Fed thought inflation was heading to their 2% target, it clearly is NOT.
Inflation has clearly leveled off ABOVE the Fed's 2% target, yet they keep cutting interest rates. pic.twitter.com/eVS3gcHD7d
— The Kobeissi Letter (@KobeissiLetter) November 14, 2024
Translation: Rate rises coming. https://t.co/WN3Ts7gCim
— The Great Martis (@great_martis) November 14, 2024
J Powell has handed Trump a ticking time bomb
By prematurely cutting rates by 50 bps ahead of the election, even with inflation still running hot, the Fed has set the stage for an inflationary resurgence
The latest October inflation data released this morning confirms the… pic.twitter.com/SsYtXHgcAk
— Porter Stansberry (@porterstansb) November 14, 2024
Meanwhile, US temporary help services jobs are down 145,800 over the last 12 months, to their lowest since October 2020.
This is considered a LEADING indicator for the unemployment rate.
Temporary help services jobs have shrunk for 23 months, the longest stretch since 2008. pic.twitter.com/p9fVoeKSYp
— The Kobeissi Letter (@KobeissiLetter) November 14, 2024
At a high level, stagflation is an economy with RISING unemployment and rising prices.
This is a nightmare situation for the Fed because it puts them in a lose-lose situation.
If you raise rates, we head into a recession, if you cut rates, inflation rises even further. pic.twitter.com/MqBZMMEhIG
— The Kobeissi Letter (@KobeissiLetter) November 14, 2024
🚨BREAKING NEWS🚨
THE FED HAS JUST BEEN PUT IN THE WORST POSITION POSSIBLE…
FOR THE FIRST TIME SINCE 2020 CPI & PPI BOTH ROSE AND AT THE SAME TIME HOUSING DEMAND IS SLOWING WITH INTEREST RATES ON THE RISE
THIS IS EXACTLY WHAT HAPPENED IN 1929 BEFORE THE ECONOMY COLLAPSED$SPY pic.twitter.com/pJqNGOMOB7
— Mike Investing (@MrMikeInvesting) November 14, 2024
This is beginning to look like stagflation seen in the 1970s.
Just as the Fed thought they had inflation under control, inflation and unemployment rebounded.
If we see another wave of inflation in 2025, we could be in a similar situation, but likely not as bad as the 1980s. pic.twitter.com/yEPQRX18Nq
— The Kobeissi Letter (@KobeissiLetter) November 14, 2024
🚨 BUFFETT’S $325 BILLION “NOAH’S ARK” CASH FUND: PREPPING FOR A MARKET STORM?
Warren Buffett has been stacking Berkshire Hathaway’s cash pile to a record $325 billion, signaling caution amid sky-high market valuations.
With stocks now worth 198% of U.S. GDP—the highest since… pic.twitter.com/MVBVouIMhJ
— Mario Nawfal (@MarioNawfal) November 14, 2024
TOPS IN.
Few understand this. pic.twitter.com/vyIEyytMtf
— The Great Martis (@great_martis) November 14, 2024
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