GDP is barely 1% (nominal) but core PCE is over the Fed target a
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We are Biflating our way to oblivion. As it stands, GDP is barely 1% (nominal) but core PCE is over the Fed target at 2.2%. Annualized, core CPI over the past 3 months is 3.6%. Real wages and house prices (and personal net worth) are deflating along with anticipated retirement funds. margin squeezes are hitting small and now even larger businesses.
The contagion has spread across the globe to all developed countries. So even multinationals are not immune to the squeeze.
I think the Fed is beginning to see and understand biflation. They put out a research paper earlier this summer. And it showed a clear shift in understanding the new situation. And I think it explains why they're putting their foot on the brake as far as more QE. Another wave of easy money would just sour the global economy further