Key inflation indicator posts biggest year-over-year gain in nearly three decades

[Peter1469]

At least the markets expected this so they didn't react to it.


Key inflation indicator posts biggest year-over-year gain in nearly three decades

A key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday.

Though the gain was the biggest since April 1992, it met the Dow Jones estimate and markets reacted little to the news. The stock market posted mostly solid gains, while government bond yields were moderately higher.




The core personal consumption expenditures price index increase reflects the rapid pace of economic expansion and resulting price pressures, and amplified how far the nation has come since the Covid pandemic-induced shutdown of 2020.


Though the reading could add to inflation concerns, Fed officials continue to insist that they see the current situation as temporary and likely to abate as conditions return to normal.

I posted another thread recently that shows this current inflation is not a temporary issue soon to reverse course.

[RMNIXON]

The Markets failed to react because they watch the Left Media who keep telling them all is well.


Can't wait for the screaming and finger pointing in the not so distant future................