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Politics : The Donald Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (31860)	8/13/2019 9:21:00 AM
From: RetiredNow	Respond to of 73909

Hmm. On the one hand, I don't think the US should ever get involved in stopping food aid to any country, because it is the people who always get hit hardest. On the other hand, I think Code Pink should be looking a lot harder at Maduro's Genocidal policies, rather than at the US. Madura is the root cause of Venezuela's destruction, not the US.

To: John Vosilla who wrote (31860)	8/13/2019 9:24:43 AM
From: RetiredNow	1 Recommendation Recommended By GROUND ZERO™ Read Replies (1) \| Respond to of 73909

BTW, different topic, John, check this out. Inflation in core is starting to wake up. This is going to be the mother of all pickles for the Fed to navigate. We're heading towards the end of the business cycle and maybe recession within a year, the Fed just lowered rates and is under extreme pressure from markets and from the White House to continue lowering. If the economy sinks into recession, he's going to have to pull the trigger on more lowering of rates and maybe restart QE eventually. All that in the face of the dreaded inflation beast that is waking up. This could mean either raging inflation or stagflation or a harsh recession, if the Fed decides to fight inflation. My guess is the Fed will be dovish for way to long and will let inflation rage hard like in the 70's and 80's, before they start fighting it. So we're in some very interesting times. I don't see how stocks stay elevated with all the hits the economy is going to take in the coming year. I still think we'll see a >50% stock market crash before the new business cycle begins. ---------- U.S. Core Inflation Hits Six-Month High in Broad-Based Gain bloomberg.com Katia Dmitrieva LISTEN TO ARTICLE Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. A key measure of U.S. consumer prices unexpectedly accelerated in July in a broad-based advance, signaling inflation may be firming as the Federal Reserve debates whether to lower interest rates further. The core consumer price index, which excludes food and energy, rose 0.3% from the prior month, and 2.2% from a year earlier, according to a Labor Department report Tuesday. Both gains exceeded the median estimates of economists, while the broader CPI advanced 0.3% on the month and 1.8% annually. Faster inflation may strengthen the hand of policy makers who are reluctant to keep lowering borrowing costs following last month’s quarter-point reduction, as employment and consumer spending remain solid. At the same time, the latest ratcheting-up of U.S.-China trade tensions and a deepening global economic slowdown are weighing on the outlook, with investors pricing in two to three more moves this year. Following the report, traders trimmed slightly the amount of Fed easing they have priced in for this year while the 10-year Treasury yield climbed to its high for the day and the U.S. dollar gained. Policy makers have struggled to lift inflation toward their 2% target, which is based on a separate Commerce Department index that tends to run slightly below the Labor Department’s CPI. President Donald Trump has repeatedly cited low inflation in his attacks on the Fed and calls for deeper interest-rate cuts. The 2.2% annual gain in the core CPI followed 2.1% in June and marked the fastest increase since January. The index rose an annualized 2.8% over the past three months, the most since early 2018. The two-month gain of 0.6% was the most in more than a decade. Underlying TrendWhile the Fed officially targets inflation including all items, policy makers look to the core measures for a better sense of the underlying trend because food and energy prices tend to be volatile. Tariffs on a wide range of consumer products imported from China, set to take effect Sept. 1, may boost inflation further. In addition, declining yields on 10-year Treasuries have effectively wiped out any inflation-adjusted return on the security. Many key measures within the Labor Department’s gauge advanced in July. Shelter costs, which make up about a third of total CPI, rose 0.3% for a second month, while medical care was up 0.5%, apparel advanced 0.4% and used cars and trucks rose 0.9%. Prices for new vehicles fell 0.2%, the first decline since February. Energy prices rose 1.3% from the prior month as gasoline prices increased 2.5%. A national gauge of retail gasoline prices was up on average during the month though it has declined since mid-July. Food costs were unchanged for a second month. Get MoreA separate Labor Department report Tuesday showed average hourly earnings, adjusted for price changes, rose 1.3% in July from a year earlier, following 1.5% in June. Higher inflation tends to eat into wage gains. Economists surveyed by Bloomberg had forecast the core gauge would rise 0.2% from the prior month and 2.1% from a year earlier, with the broader index rising 0.3% on the month and accelerating to 1.7% on a yearly basis. — With assistance by Kristy Scheuble, and Benjamin Purvis (Updates with market reaction in fourth paragraph, two-month advance in sixth paragraph.) Before it's here, it's on the Bloomberg Terminal. LEARN MORE