YOU DON’T SAY: St. Louis Fed Quietly Finds US Is Now In A Recession.
In recent weeks, we have seen a burst of unexpected truthiness out of various regional Fed banks, a sharp contrast to the constant barrage of prevarication out of the Federal Reserve.
First, it was the Philadelphia Fed which effectively revised what was according to the BLS a gain of 1.1 million jobs to just 10,500 jobs, meaning that the Fed was looking at erroneously overstated, arguably politicized data, as it unleashed its burst of 75bps rate hikes in June… which happened just as June jobs number turned negative.
Then, a few days later, the Cleveland Fed suggested that the Fed’s entire inflation view is wrong, relying on core CPI (and PCE) data that is woefully, even dangerously, delayed – in some cases lagging market data by up to 12 months, and suggesting that rent inflation – a core component of shelter and OER inflation which is arguably the most important component of “sticky” US service inflation – is actually far lower if measured correctly.
The assertion that inflation might actually be lower than reported — than experienced — is specious at best. But this is from ZeroHedge, where they seem to love easy money.
That aside, it’s nice to see various Fed banks finally catching up to where the rest of us were months ago.