How About That Economy?

Inflation just spiked to 4.2%.

I think that Trump's new nominee for Fed Chair is going to be forced to raise rates at the next meeting.

Inflation crossed 4 percent for the first time in three years in May, exacerbating Americans’ pain at the pump and dealing a fresh political blow to the White House, as the Iran war’s toll on consumers shows no sign of abating.

The Labor Department’s consumer price index rose at a 4.2 percent annual pace in the year ending in May, up from 3.8 percent in April with higher energy prices again accounting for much of the monthly gain. 

Gas prices, which have surged roughly 50 percent since January as the Iran conflict disrupts oil flows through the Strait of Hormuz, rose 7 percent in May. The reading marks the third consecutive month in which the conflict has measurably pushed prices higher for American consumers.

………

Trump shrugged off the report hours after its release, delivering a line sure to be featured in Democratic attack ads around the midterm elections this fall: “I love the inflation,” Trump told reporters in the Oval Office Wednesday.

That response from Trump is totally mental.

One does wonder what is going to happen when we finally run to the end of petroleum and natural gas stockpiles.  

We may see 1973 style gas lines.