Joe Weisenthal Gets It

Well this is a major signal that the average Joe is becoming aware that price inflation is accelerating and that the Fed is not going to fight it for some time. Joe Weisenthal writes at Business Insider:

Inflation is finally happening, and the Fed will end up being behind the curve.

The events of the past week crystallized that above thought in the mind of economists and investors. 

To step back, there were two big moments this week.

1) There was the jump in Core CPI that was the biggest since 2009.

2) And then there was the Janet Yellen press conference, in which she said that CPI jump could be just "noise" and that the recent drop in the unemployment rate was not actually reflective of the true state of the labor market (which she regards as considerably weaker due to measures of worker discouragement).

In other words, despite data showing that the Fed is getting close to hitting its economic goals, Yellen doesn't believe the numbers.

I have been warning in the EPJ Daily Alert that this day was coming (SEE:Who Needs JP Morgan's Chief Strategist When You Have EPJ?). Once the accelerating price inflation gets recognized by the general public, the pace of the inflation will intensify. It's coming, folks, be prepared.

-RW