Editor’s note: This is a lightly edited transcript of the accompanying video from professor Peter St. Onge.
Inflation is rising again, and even Federal Reserve cheerleader Bloomberg is worried the Fed is losing the plot.
Inflation rising is awkward for the Fed, given Chairman Jerome Powell already cut rates for the looming recession.
In fact, he just did a jumbo half-point cut—which makes inflation go up.
This is known as a policy error. And the Fed’s been making a lot these days.
In raw numbers, the Consumer Price Index surprised on the upside at around 2.2% annualized, but the bombshell was so-called core CPI, which strips out food and energy. That came in at nearly 4% annualized.
Prices rose across the board: Groceries were up the most since the beginning of the year, with meat up more than 10% annualized.
Car prices (new and used), car insurance,…
