Last week the FOMC (Federal Open Market Committee) led by chair Jerome Powell at a regularly scheduled meeting and post meeting Video Interview, aggressively commented that they are going to wind down the monthly purchase of fixed instruments and plan on raising short term interest rates to thwart the inflationary pressures, mainly the backward looking CPI (Consumer Price Index) readings reported by the BLS (Bureau of Labor Statics) …. On a side note, ever notice how darn many acronyms are used in Economics….OK digressing…
We can debate the source of the inflationary pressures, supply chain, wages, oil or other matters…
On that note, here is the link to the BLS weighting of the CPI, it is a measly 320 lines long…. complicated to say the least…
But there are possible signs of a slowing already…
Certainly cannot see it in the year over year data below….
But the monthly change in CPI looks a little different…
Not making a call, just an observation… We will be watching!
Have a Great “CPI Updated” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
