Greenspan’s Retreat Forms Saucer Bottom as US Core Inflation Exceeds 2% Target

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Today, the US inflation numbers were released and CNBC proclaimed “US core inflation posts biggest gain in nearly 1 1/2 years!” Yes, core inflation (CPI less food and energy) rose 2.1% YoY, hardly distinguishable from other readings since 2000.  But what is noticeable is the “Greenspan Retreat,” the last time core inflation exceeded 5%.

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Of course, housing rents and prices are growing at over twice that of core inflation. The FHFA purchase only index YoY is growing at 5.2% and owner’s equivalent rent is growing at 3.4%.

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Things have never been the same since Fed Chair Alan Greenspan’s tenure. It is off to the races for assets since Greenspan and his merry men.

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 Alan Greenspan cheering 5% core inflation in 1990.

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