Ouch. Inflation Isn’t Dead Yet—PPI Just Lit It Back Up

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Ouch! Inflation running hot, my friends. Wow! Producer prices much, much hotter than expected. PPI rose 0.5 % month over month. Headline PPI to 3 % year over year. Service costs. Services costs dominated the headline. Again, goods, not so much. Not so much.

Again, that would be tariff related What does this mean I don’t see how The Federal Reserve and they you know, they held their fire when it came to lowering rates at a 3 % rate that’s 50 % above their target What we have happened unfortunately is we get these knee-jerk

reactions to these month over month numbers. Another example of this was the trade deficit number from a month ago when they’re, my God, I was looking at terms are working and looking at the lowest trade deficit going. And then this month’s numbers came in and they were worse than last year.

Again, things change, things are seasonal. Have to have a longer outlook on things. When the President of the United States comes out and he says that we have tackled inflation, there is no inflation anymore. That’s not true. It’s not true. Again, it’s Donald Trump, you know, he’s like, caught a fish this big moments.

He over exaggerates on everything. Have they brought inflation down? Almost certainly it’s come down. Most certainly there’s no doubt about that inflation has come down, but it’s still too hot. I am gonna be very, very curious to see what is going to happen next. Jay Powell is finishing up. Kevin Warsh has been nominated and what he’s going to do at the Fed.

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Little Birdie told me Little Birdie told me I’m just gonna leave it at Little Birdie told me that Judy Shelton Judy Shelton has had meetings with Scott Besson as of late You get Judy Shelton involved with the Fed and Kevin Warsh it’s kind of to me, you know, it’s kind of like, you know that you know when when De Niro and

Puccino were in the movie Heat together. They had that scene together. That’s pretty good stuff. know, Christopher Walken and Dennis Hopper in True Romance. Great scene as well. Listen, get her on there because her philosophy is, you know what? We don’t want any inflation. We want inflation at zero. Kids, the way that you’re have to get there is you’re gonna have to have fiscal sanity. The government’s gonna have to rein in.

Spending, this is the type of thing that’ll put a big fat huge smile on my face. Getting rates down. All sorts of good stuff when you’re prudent. You live within your means. Inflation, I want to remind everybody. I want to remind everybody it’s all about monetary. One of the things that

Unfortunately, people they all you know what? tariffs are inflationary. They making prices go up, but for a different reason. For a different reason, how can I kind of make sense of this? You know, when you’re sick, you can be sick. And sometimes you can have like a, you know, a cold or bacteria thing, or you can have a viral thing. Okay, they’re both bad, you feel bad, right? Either way, but they’re different.

They’re different. You can’t treat a virus with antibiotics. Anyway, it’s the same exact thing. Okay? It’s kind of like, know, with the talk about the egg prices or chicken prices. And we had the avian flu. And then I was cracking jokes here on the program back at that point in time. I said, the Fed, what are they going to do? They can’t make egg prices come down because you put masks on chickens.

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I’m work that way. inflation is something completely different and that is something the Fed has control over. Have to stop printing all of this money. We have to stop the quantitative easing. We have to get back to some sort of normalcy. You do that. Sky’s the limit and that is the sky limit just for people who own assets like me and my clients and many of you out there.

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