NOTHING TO SEE HERE, MOVE ALONG: Empire Fed Manufacturing Survey Collapsed In April – Biggest Drop Ever (Ex-COVID).

After the stunningly surprising upside surge in April, The Empire Fed Manufacturing Survey has collapsed back to reality in May, crashing 42.6 points to -31.8 from +10.8 (dramatically worse than the -19.0 expected). Outside of the COVID lockdowns, this is the biggest MoM drop ever.

Most problematically, Stagflation is screaming loudly again.

If the economy feels slightly schizophrenic, you’d feel that way too if doctors (Washington) were pumping you full of amphetamines (money printing) and Demerol (overregulation) at the same time.