Posts filed under “Fixed Income/Interest Rates”

Parsing the Fed

The WSJ:

The Sept. 20 statement announced that the Fed was raising its key short-term interest rate by one-quarter point to 3.75%, its 11th straight increase, despite uncertainty about the economic impact of Hurricane Katrina. The storm hurt near-term economic growth, which normally would call for lower interest rates. But it also has elevated inflationary pressure, which normally would call for higher rates.

>

Infofedparse0509

>

Source:
PARSING THE FED
Weathering the Storm
WSJ, September 20, 2005
http://online.wsj.com/documents/info-fedparse0509.html

Category: Economy, Fixed Income/Interest Rates

Deficits and Interest rates

Category: Economy, Fixed Income/Interest Rates

Its Gold Jerry, Gold!

Category: Commodities, Economy, Fixed Income/Interest Rates

Except for Inflation, there’s no Inflation

So let me make sure I completely understand this: If we back out all of the inflationary data from the CPI, and PPI, there is, um, no inflation? 

Thanks for clarifying that.

While the Dismal Set — and the majority of CNBC guests — continue to spout such foolish nonsense, its nice to see that at least the WSJ wasn’t bamboozeled. Their online headline read:  Consumer Prices Climb 0.5%

"Gasoline prices shot up 8.3%, the biggest increase since February 2003.
Food prices, however, were unchanged for the first time in nine months.
Medical-care prices were unchanged after nearly 30 years of increases.
Housing prices grew more slowly in August, falling to a 0.2% rate from
0.4% in July. Automobile prices fell 0.5%, half the rate of decline
recorded in July."

You can see more from the dismal set below . . .


UPDATE I: September 16, 2005 10:54 am

Its the ultimate Hedonic adjustment:  Chart of the Day shows us graphically that without the items that are going up in price, there is hardly any inflation at all! 

Core_inflation



UPDATE II: September 17, 2005 11:54 am

The first official chart from the weekend WSJ:

Inflation


UPDATE III: September 24, 2005 2:54 pm

Here’s a round up of all our recent discussions on inflation

Sources:
Consumer Prices Climb 0.5%
Katrina Helps Propel Jobless Claims
To Highest Level in Nearly 10 Years
WALL STREET JOURNAL, September 15, 2005 5:44 p.m.
http://online.wsj.com/article/0,,SB112678676740241720,00.html

Read More

Category: Economy, Fixed Income/Interest Rates

3 and 2 year yield curve inversion

Category: Economy, Fixed Income/Interest Rates

Sunday Nite Linkfest

Category: Economy, Fixed Income/Interest Rates, Investing, Psychology, Weblogs

Understanding the Inverted Yield Curve

Category: Economy, Fixed Income/Interest Rates, Psychology

Recession Predictor

Category: Commodities, Economy, Fixed Income/Interest Rates

More Conundrum

Category: Economy, Fixed Income/Interest Rates

Real Federal Funds Rate: Hikes with Teeth

Category: Economy, Fixed Income/Interest Rates