Year over Year
Month to Month
So, year over year inflation fell slightly in January, to 6.4%. This means that the Federal Reserve is going to continue to raise interest rates, and may go back to 50 basis point (½%) rate hikes.
Rather unsurprisingly, the interest rate on the 10-Year Treasury note jumped to over 3.8%, which raises the government's borrowing costs, and will likely hasten the debt ceiling cliff
When all of this is juxtaposed with a big bounce in US retail sales in January, it seems to me that we are in for a very bumpy ride.
Inflation has been trending down for 6 months now. It's time for the Fed to take the foot off the break and coast a bit.
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