Federal Reserve 75bps???
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With last weeks CPI report confirming what every American that has a pulse already knew, that inflation is and continues running very very hot. Its only a matter of time till the resilient markets get the beat down and realize the FED has no choice but to raise rates quicker, higher and faster. We knew this was a long time in the making and that the FED was way behind the curve, knowing full well with the move in their total assets from $3T to $9T only added more fiat to the inflationary fire. Now and as Minsky always knew was the inevitable with fiat debt printing, the scent of inflationary ember is spreading and will no doubt succeed in suffocating asset prices.
So many have been lulled to sleep for decades, even us here knowing full well eventually the game would be up at some point, were far too risk averse to buy into the euphoria and have well underperformed for the greater part of the decade. We will be the first to admit that we never trusted this reality of debt pile, that we always knew eventually the concentration of wealth would be so great that even the central banks wouldn’t be able to mask inflation for too long.
WELL ITS OVER
Now some are calling for the Federal Reserve to go 75bps this week at their meeting, here is the latest CME Watch Tool:
