The monthly report on consumer inflation from the government will be issued at 8:30 a.m. EDT this morning and the only expectation anyone should have is pain for the markets. The main thing to remember is that this is a reminder that the number is so fictitious that the alternative reality being sold by politicians and bureaucrats makes the Metaverse look normal.
Using the projected numbers by economists surveyed of CPI coming in year over year at 8.1% one can only conclude that the “pivot” and “pause” clowns will be all over television today. If the number comes in hot, which it should still, then bonds should sell off again and the US 10 year breech the 4% yield easily.
Meanwhile, I will continue to publish the Atlanta Fed’s Flexible/Sticky CPI which is closer to reality:
If the BLS number comes in at anything over 8.5% look out below as that could trigger even more panic in the bond market and a rout in equities once again.