Inflation is like dandelions

The more you try to suppress it, it keeps growing and popping up in more places than expected. Despite excluding everything a person consumes in order to survive, November core CPI came in at 0.3%. That’s up 2.3% year over year, or 0.3% over this data driven Fed’s “comfort zone”. (Headline inflation came in at 0.8%, or 4.3% y/y.)

The Fed lowered rates December 11 when I had been writing since June that the Fed would need to raise rates at this time. Predictions can sometimes be like a multiple choice question. You can be completely wrong, completely right, or halfway right/wrong. I saw inflation rising to levels not seen since the late 1970s, the last time Saturn was in Virgo.* Despite the downturn in housing and the ensuing credit crisis, it was my belief that it would be dangerous for the Fed to leave rates unchanged (let alone lower them!) because of inflation.

* Scroll to the bottom of the Cycles section under DIRECTORY for my post, “Time to Clean Up: Saturn in Virgo”.

Related Posts: Check out my past posts about the Fed under Federal Reserve in the DIRECTORY. Economy features many posts about inflation.