by Sundance at The Conservative Treehouse
Fed Governor Christopher Waller appeared on CNBC to announce we have reached peak inflation, and things will moderate from here. All of these fed moves are political moves, not monetary policy-based moves. Here’s the thing they will never admit to the non-institutional investor.
The fed has been painfully slow to raise interest rates on purpose. They did not make a mistake. The reason for their delay is they needed to wait for the beginning of the first 2021 inflation wave to cycle through before they raised interest rates. It’s a game of mirrors that almost no one sees.
WATCH:
The rate of inflation will drop once the statistical year-over-year comparisons reach the same moment in the prior year. The fed will raise interest rates in May and then use the June inflation rate decline as a false talking point to highlight how their policy is working. They wait for May, because they need to wait for the calendar, nothing else. Inflation is measured as the percentage of change from the prior year. By waiting until the inflation is measured against the first wave of rising prices, it will give the illusion of a decline in inflation.
So that’s why they waited. But here’s the worse part….
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