Ouch. It’s frustrating that the media continues to push the notion that the Federal Reserve is the only entity that has a lever to manage inflation without even mentioning the root cause of inflation – massive government spending. As long as Biden continues to spend, inflation will continue. It really is that simple. If you want to pull inflation back, start ending government programs and reduce spending.

A hotter-than-expected consumer price index report rattled Wall Street Wednesday, but markets are buzzing about an even more specific prices gauge contained within the data — the so-called supercore inflation reading.

 

Along with the overall inflation measure, economists also look at the core CPI, which excludes volatile food and energy prices, to find the true trend. The supercore gauge, which also excludes shelter and rent costs from its services reading, takes it even a step further. Fed officials say it is useful in the current climate as they see elevated housing inflation as a temporary problem and not as good a measure of underlying prices.

Supercore accelerated to a 4.8% pace year over year in March, the highest in 11 months.

 

[…]

 

Further complicating the backdrop is a dwindling consumer savings rate and higher borrowing costs which make the central bank more likely to keep monetary policy restrictive “until something breaks,” Fitzpatrick said.

 

The Fed will have a hard time bringing down inflation with more rate hikes because the current drivers are stickier and not as sensitive to tighter monetary policy, he cautioned.