Fed Survey: Consumers expect SURGING INFLATION to crush their labor (Oh lawd!)

[OPGenesis]

"So even as consumers expect their earnings to grow by only 2.1% over the next 12 months, and their total household income by only 2.4%, according to the survey, they expect to face these whoppers of price increases:

- Home prices: +5.5%, a new high in the data series
- Rent: +9.5%, fifth month in a row of increases and new high in the data series
- Food prices: +5.8%
- Gasoline prices: +9.2%
- Healthcare costs: +9.1%
- College education: +5.9%.

Sadly, the Fed doesn’t ask consumers about their expectations for new and used vehicle prices, which are now in the process of spiraling into the stratosphere. It would have been amusing to see what consumers expect those prices to do over the next 12 months."

https://wolfstreet.com/2021/05/10/co...r-feds-survey/

Consumers are picking up on the rise of inflation, and the Fed, which has been trying to heat up inflation, is pleased.

[DeshaunWatson]

Consumers aren’t picking up on it. They’re just not going to work. Liberals aren’t smart enough.

[gachase21]

I think right now would be a good time for a gasoline pipe line to get hacked, and tensions in the Middle East to uprise coincidentally simultaneously....



Lol nah that would never happen

[fitnessislife]

But but ZOH MY GOD BIDEN ECONOMY JOBS JOBS JOBS!!!!!!


Whoops.

[ChewYourFood]

I don't know how this ends well...

Prices skyrocketing while people are unemployed or not making as much as they were before. I drove through a meh part of town and literally every driveway had brand new cars... Where the fuk is everyone getting the money? Taking equity out of their homes and cheap credit? That stimmy isn't going to last forever. I think the housing market and the auto market is going to simultaneously explode.

Meanwhile the middle class isn't getting a tax increase? Look at the prices of everything skyrocketing.

[gachase21]

The Fed is indeed committed to inflation catch up - they are worried about trying to stop it - it only being temporary - and end resulting deflation or possibly not hitting their 2% inflation target

They are trying to hit a small keyhole and carefully navigate it

Repeat of old post

Quarles Says Fed Very Committed to Pushing Inflation Above 2%

Federal Reserve Vice Chair for Supervision Randal Quarles says that investors should take the U.S. central bank at its word that it will deliver an overshoot of its 2% inflation target.

“I think it is very credible to expect the committee to be comfortable with inflation somewhat over our 2% target,” he said Tuesday after giving a speech on financial regulations to the Peterson Institute for International Economics. “Over time we will look to average, and I think that is a very credible commitment from the committee and I am very supportive of it.”


The Fed in August adopted a new framework that will seeks to average 2% inflation over time and redefined maximum employment -- the other half of its dual mandate from Congress -- as a broad and inclusive objective. As a result, it will not preemptively raise interest rates as the unemployment rate declines, unless it sees evidence that inflation expectations are becoming unanchored.

https://www.bloomberg.com/news/artic...?sref=DWzi38c2

-Sharp rises in both home prices and interest rates have driven affordability to its lowest point since mid-2019

-It now takes 20% of the median household income to make monthly payments on an average-priced home – back to the 5-year average but still stronger than the 20-year average of 23.4%

-Thus far in 2021, new listing volumes have failed to make up for the shortfall of 2020 and were down 16% and 21% year-over-year in January and February, respectively
The 125,000 fewer listings over the first two months of 2021 compared to 2020 have pushed for-sale inventory 40% below last year’s level and trending in the wrong direction

https://www.blackknightinc.com/black...tgage-monitor/




Median fomc forecast 4.5%

https://www.federalreserve.gov/monet...bl20210317.pdf


Core ppi +3.1 yoy

https://www.bls.gov/news.release/ppi.htm

With Economy Poised for Best Growth Since 1983, Inflation Lurks

Economists expect growth to slow to 3.2% next year, which would still make 2021-22 the strongest two-year performance since 2005.

That boom might have a potentially troubling side effect. Inflation, as measured by the consumer-price index, is expected to jump sharply from 1.7% in February when March data is released Tuesday. That is partly a quirk of the data, as outright declines in consumer prices recorded at the start of the pandemic in March of last year drop from the 12-month calculation.

Still, economists see further price pressures as the economy reopens, with inflation accelerating to 3% in June, which would be the highest since 2012, before slowing to 2.6% by December. They see the Federal Reserve starting to raise rates in mid-2023, rather than 2024 or later, as officials at the central bank have indicated.

The Wall Street Journal survey of 69 business, academic and financial forecasters was conducted April 5-7. Not all participants responded to every question.

Cont...

https://www.wsj.com/articles/with-ec...ks-11618149601






I am personally not buying the pipeline BS story

[MMeadows11]

In to hear conservitards moan about inflation.

I remember when they were bringing this up a few months ago too. Oh, wait....

[backinbusiness]

LOL and liberals want to give checks every month via UBI.

Then watch rent go up 50%

[sooby]

Lefties: ZOMG BIDEN! BEST RECOVERY! BEST STOCK MARKET! JOBS! JOBS! JOBS!

[chaunce54]

It's not like it hasn't already been happening for months or anything, and there's no sign of it stopping any time soon...

[tripod29]

But most importantly no more mean orange man tweets. That's what's really important. Don't lose focus folks.

[swoleyo]

I think right now would be a good time for a gasoline pipe line to get hacked, and tensions in the Middle East to uprise coincidentally simultaneously....



Lol nah that would never happen

Don't forget shutting down any future gas line projects which are almost done like the XL pipeline.

[vickissick07]

Maybe these idiots will go back to work when it costs their stimulus check just to go to the grocery store. Chit really needs to just hit the fan though and let darwinism kill off all the freeloading libs who have no idea how to take care of themselves.

[gachase21]

Stanley Druckenmiller says the Fed is endangering the dollar’s global reserve status

KEY POINTS
Fed policies could end up threatening the long-term health of the U.S. dollar, investing magnate Stanley Druckenmiller told CNBC.

“I can’t find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one,” the chair and CEO of Duquesne Family Office said.

Though he agreed with the early steps the Fed took during the pandmeic, he said the policies have continued for too long.

https://www.cnbc.com/2021/05/11/stan...ve-status.html




Petty good summary .


Fed saved our a$$ in innovative ways during the start of the pandemic, and a few moths longer as needed.


Then they left her foot on the accelerator way way way too long.



I think his bond comments a little off in that the inverse to normal relationship would be expected if nations you do exchange with is dependent on currency conversion to bond transactions are off-line.

The normal relationship will have to be determined once it is all back online.

[ParsleyTea]

The famous wall street investor Warren Buffet has warned similar in the past. Wages may be going up, but if government lets inflation run away you will not eat better.

[wickedman]

UBI, communism, let's do it!

[OPGenesis]

https://www.cnbc.com/2021/05/11/stan...ve-status.html




Petty good summary .


Fed saved our a$$ in innovative ways during the start of the pandemic, and a few moths longer as needed.


Then they left her foot on the accelerator way way way too long.



I think his bond comments a little off in that the inverse to normal relationship would be expected if nations you do exchange with is dependent on currency conversion to bond transactions are off-line.

The normal relationship will have to be determined once it is all back online.

What a revelation lmao. He just figure this out?

Geezus. Who pays these guys?

Lol @ the Fed saving the day too. All they did was expand their balance sheet to 8 trillion.

Now it has to stay that unless they want a huge problem on their hands.

[monty097]

In to hear conservitards moan about inflation.

I remember when they were bringing this up a few months ago too. Oh, wait....

I remember when libs were bitching about how much Trump was spending, but now it's ok for Biden to spend even more for some reason.

[Judgment]

In to hear conservitards moan about inflation.

I remember when they were bringing this up a few months ago too. Oh, wait....

It was happening then, too. It's been a linear surge.

[OPGenesis]

https://www.cnbc.com/2021/05/11/stan...ve-status.html




Petty good summary .


Fed saved our a$$ in innovative ways during the start of the pandemic, and a few moths longer as needed.


Then they left her foot on the accelerator way way way too long.



I think his bond comments a little off in that the inverse to normal relationship would be expected if nations you do exchange with is dependent on currency conversion to bond transactions are off-line.

The normal relationship will have to be determined once it is all back online.

Had to quote this again for the lolz. After a long day of work I was able to read the important quotes from Druckenmillers rant.

“If they want to do all this and risk our reserve currency status, risk an asset bubble blowing up, so be it. But I think we ought to at least have a conversation about it,” Druckenmiller said.

Fed saves the day.........er is going to blow up the everything bubble it created LMAO.

Oh lawd.

https://www.zerohedge.com/markets/we...reserve-status

[gachase21]

Had to quote this again for the lolz. After a long day of work I was able to read the important quotes from Druckenmillers rant.



Fed saves the day.........er is going to blow up the everything bubble it created LMAO.

Oh lawd.

https://www.zerohedge.com/markets/we...reserve-status

Well I’m certainly glad the fed kept your customers going, so your business can be alive, and you could go to work today.

Hope things went well.