Marc Chandler – Inflation Continues To Run Hot, Markets Fall While USD and Gold Move Higher

June 10, 2022

Marc Chandler, Managing Partner at Bannockburn Global Forex joins us to focus on the inflation, CPI, data released today. The number was higher than estimates with year over year inflation at 8.6%. We discuss the different components that are keeping inflation hot and the market reaction. This all ties into the Fed rate hiking cycle where now a 50 basis point hike is priced in for September (3 meetings from now). 




Click here to visit Marc’s blog – Marc to Market.

    Jun 10, 2022 10:03 PM

    Fed: ‘The 30+ year Bull Market In Bonds Is Over,’ Strategist Says

    Yaseen Shah -Thu, June 9, 2022

    Don’t expect inflation to come down anytime soon, says Ellen Hazen, chief market strategist at F.L.Putnam.

    “We think that inflation has probably peaked and will be declining toward the rest of this year,” Hazen told Yahoo Finance Live. “The reason for that is that companies have a wide variety of different factors leading to inflation. There are higher labor costs. There are higher fuel prices, higher transport and logistics prices, higher commodities prices, and some of these are going to come off, but they won’t come off all at the same time.”

    Jun 10, 2022 10:29 PM

    What Wall Street Is Saying About May’s Shocking Inflation Report

    Alexandra Semenova – Fri, June 10, 2022

    “Inflation continued to surge in May, increasing at the quickest pace in 40 years as consumers face rising challenges at the gas station and grocery store.”

    “The Consumer Price Index (CPI) published Friday by the Bureau of Labor Statistics rose 8.6% from a year ago, up from April’s reading of 8.3% and higher than economists had projected.”

    “Federal Reserve policymakers tasked with bringing prices back down to earth are likely to take cues from May’s CPI report on how aggressively they need to raise interest rates to mitigate inflation that shows no signs of abating.”

    Brian Coulton, Chief Economist, Fitch Ratings, says the May figures are the “clearest sign we have of inflation broadening and starting to becoming embedded.”

      Jun 10, 2022 10:09 PM

      ‘I exhausted my savings’: Inflation has Americans turning to loans, credit cards to cope. Does it pose big risks?

      Paul Davidson – USA Today – June 1, 2022

      “Consumer borrowing is surging as inflation hovers near 40-year highs and Americans resume pre-pandemic activities like traveling and dining out.”

      “A growing share of those cash-strapped households are behind on payments for car loans, credit cards and personal loans.”

        Jun 10, 2022 10:14 PM

        My wife and I have been financially assisting 4 different families in various ways for over 2 Years. 3 on her side and one on mine. Things are worse out there than is reported in government data. Inflation is a tax and will continue to make things worse. All levels of government will transfer the burden of their over spending to the people who can’t meet increased taxing levels.

          Jun 11, 2022 11:34 AM

          Agreed bigtime Lakedweller2. Government stats, sector stats, and private studies or polls only capture trends, but often don’t drill down to the real human impact to individuals and families.

          If economists got up from their computers and went out and talked to everyday people at grocery stores, gas pumps, retail stores, hospitals, campuses, car repair shops, food banks, shelters, churches, non profits, etc… they’d find the economy is far less robust, and consumers are not nearly as strong as touted.

          What is interesting about the trends seen regarding increased credit card debt or pulling equity out of homes, is that it clearly shows the consumption seen in the economy recently is on life support. These demand trends cannot be sustained as prices continue to ratchet higher and higher, and people are running out of ways to make ends meet. This environment is also troubling for those on fixed incomes that are no longer working and cannot increase their wages or earnings power.

    Jun 10, 2022 10:47 PM

    When there is a crash it is no laughing matter for the banks to assume the responsibility of billions of dollars worth of loans secured by credit which by the end of the day might prove to have dropped to a fraction of it’s former self. DT

    Jun 10, 2022 10:33 PM

    When America has lost it’s financial war to put sanctions on other nations, The American public is really going to feel the pain. They must pay what other nations have been paying to buy anything, It will make them understand how the real World works and they won’t have the standard of living they have enjoyed for the last 70 years. Being poor forces you to think about others and not yourself. DT

    Jun 10, 2022 10:58 PM

    We heard years ago that the Fed is trapped. Transitory inflation & no oil drilling? What could possibly go wrong????????????