The federal government has released its Consumer Price Index (CPI) data for the month of October, 2022, drawing comments from economic observers. The CPI for October declined somewhat, but not by much. According to Mike "Inflation Trader" Ashton, the "chance of more-lasting inflation just went up a lot."
Ashton reasons that, in the wake of the recent mid-term elections, Congress will likely continue to spend money just as it has in the last three years. He seems to imply (but does not actually state) that this fiscal policy shall induce the Federal Reserve Bank to buy US Treasury bonds and Treasury bills just as it has in recent years, effectively increasing the M2 money supply.
Other commenters included these:
- Zero Hedge -- "Inflation Huge Miss: Core CPI Slides From 40-Year-High, Real Wages Tumble For 19th Straight Month"
- Mish Shedlock -- "CPI Jumps Another 0.4% in October Led by Shelter and Energy "
- Wolfstreet -- "Services Inflation Spiked to Second Highest in 4 Decades, Would Have Spiked to Highest, If Not Slowed by Biggest-Ever Mega-Adjustment of Health Insurance CPI"
- Investors' Daily -- "CPI Inflation Rate Cools Much More Than Expected; Dow Jones Jumps"