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The Fed’s Been Lying to Us About Inflation; It’s Frighteningly High

This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Even by the deeply flawed and misleading Consumer Price Index (CPI), inflation is at the U.S. Federal Reserve’s target. By other measures that more accurately portray inflation, it is well above target.

The Fed will not be deterred from continuing to tighten, continuing to remove money from the system, just because of the silliness that “CPI missed expectations.”

It’s still at least 2%… and it’s heating up.

Furthermore, we know beyond a shadow of a doubt that, as the Fed raises the federal funds rate target, it will only stimulate more inflation. The Fed will always be behind the curve, because the Fed is always back there pushing the curve ahead.

Every time it raises the federal funds target rate, the Fed signals to the decision makers in the U.S. economy that it expects more inflation, and consumers and businesses behave accordingly. I showed you the history of that a couple of weeks ago; the charts don’t lie.

And the fact is that we really have more – much more – inflation than they’re telling us.

This isn’t a mistake, it’s not a miscalculation.

Rather, it’s a deliberate obfuscation, and today, I’m going to show you exactly what the Fed leaves out (and what that means for you)…

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The post The Fed’s Been Lying to Us About Inflation; It’s Frighteningly High appeared first on Money Morning – We Make Investing Profitable.

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