Inflation is here. Just don’t tell the Fed.
The Federal Reserve is actively dismissing alarming new data points that point to an unstoppable rise in prices.
Fed Governor Lael Brainard became the latest to shrug off concerns on Monday. Speaking at a corporate event, Brainard blamed the recent 4.2% rise in consumer prices on “bottlenecks” and “supply shortages.”
the Fed’s massive, unprecedented money-printing efforts combined with record low rates and a Federal Government that’s spending trillions, are catching up with overall prices.
Consumer prices are now running more than twice as high as the Fed’s target inflation rate of 2%. Though Fed governors like Brainard say these increases are “temporary” there’s a a growing concern about what happens if they’re not.
Predictably, U.S. stocks rose on the news that the Fed is still not even willing to discuss tightening.
U.S. stocks suggest a higher open on Monday.
- S&P 500 futures: 4,204.75, +0.25%
- Nasdaq futures: 13,687.00, +0.38%
- DOW futures: 34,427.00, +0.22%
U.S. Dollar and Treasuries — the US dollar is under weakness as treasury yields stay steady.
- U.S. Dollar Index (DXY): 89.65, -0.22%
- 10-year Treasury yield: 1.608%, from previous 1.632%
- 2-year Treasury yield: 0.150%, from previous 0.170%
Stocks To Watch
Amazon (AMZN) may announce its merger with Metro-Goldwyn-Mayer movie studio as early as Tuesday. Amazon is interested in MGM’s vast library of movies, including the James Bond, Pink Panther and Rocky franchises.
Bitcoin jumped to $38,000 after Musk tweeted again, referencing a “potentially promising” talk with Bitcoin miners on the use of renewable energy.
Virgin Galactic (SPCE) rebounds after a strong trading day on Monday. Its competitors, including Delta and United, are bouncing back.
Stocks To Watch
- SPCE Virgin Galactic Holdings Inc. $25.96, 3.46%, 1.007M (volume)
- DAL Delta Air Lines Inc. $47.49, +2.86%, 144.26K (volume)
- TSLA Tesla Inc. $611.50, +0.83%, 270.36K (volume)
- UAL United Airlines Holdings Inc. $57.81, +2.97%, 201.21K (volume)
- MRNA Moderna Inc. $168.48 up $4.31 +2.63% 163.23K (volume)
Commodities To Watch
- WTI crude: $65.9, -0.21%
- Gold: $1,883.80, -0.04%