Major commodity prices have been falling since the Fed started raising interest rates … wheat, copper, soy beans, oil, and many more as evident in multi-commodity indexes … typically now 20-40% lower than their peaks … thats deflation in progress … Fed induced rate increases working FOR you.
In the link
@Gangster posted this morning on Tuesday’s thread, CPI dropped from 4.9% to 4.0% year on year. However the story looking at perhaps 30 input categories is that something like 80% of them increased rates of 4.0% to something around +10% to +15% by memory, the remainder 20% of inputs dropped very significantly, as in like -10% to -20% … things like oil, other energy, new cars and trucks, housing (rental) … oil for one is just luck as it moves more due to global circumstances rather than in response to what the US Fed does or doesn’t do.
So that’s prices for the majority of goods rising whilst the prices of input commodities are falling, mostly sharply … that’s business working AGAINST you and AGAINST central banks to drive down inflation
That would be a driver for increased corporate profits, which would the driver for a rising share market, which would be the absolute nemesis of the US Fed desperately trying to drive inflation down, and maybe that is a potential driver for the Fed wanting to thwart business and markets with a surprise rate rise tonight, or at least some tough dot plot guidance and words on the future upwards direction of interest rates given inflation and jobs are still too strong.
But who knows.
Dex
