aja8888
Moderator Emeritus
There’s a “New Upside Risk” in Town: “Pent-up Exuberance” – Fed’s Bostic
https://wolfstreet.com/2024/03/05/theres-a-new-upside-risk-in-town-pent-up-exuberance-feds-bostic/
Interesting take on the FED governors who are trying to downplay rate cut mania this year.
And..
Here’s that un-pent exuberance at work:
(The graph is in the article)
https://wolfstreet.com/2024/03/05/theres-a-new-upside-risk-in-town-pent-up-exuberance-feds-bostic/
Interesting take on the FED governors who are trying to downplay rate cut mania this year.
Atlanta Fed President Raphael Bostic came up with a new risk to the inflation scenario, or not really a new risk – because it’s been there and it’s already happening – but a new phrase to describe that risk, a phrase that will resonate here: “pent-up exuberance.”
“Pent-up exuberance” is that businesses, “ready to pounce,” would unleash a torrent of new hiring and investment at the “first hint of an interest rate cut,” which would unleash inflation all over again.
And..
Here’s that un-pent exuberance at work:
The core services PCE price index spiked to 7.15% annualized in January from December, the worst month-to-month jump in 22 years (blue line). Drivers of the spike were non-housing measures as well as housing inflation. The six-month moving average, which irons out the month-to-month volatility but is slower to react, accelerated to 3.95% annualized, the worst since July, after having gotten stuck at the 3.5% level for three months in a row.
(The graph is in the article)