I think the treasury market players sense the inflation from money printing and are selling T-Bonds as "who wants to hold them when rates are rising"?
just curious where do you see it such high inflation apart from educating and medical cost, those are in insane world of its own. Serious question. yes gas is up, but way lower than when oil was $150. my groceries are about the same give or take. Electronics keep falling. RE is going up in some place ( fl for eaxamle) and falling off the cliff in others (Manhattan). may be they not overly Lying????
If the Federal Reserve was being dishonest with their numbers, that would be a bigger scandal than Enron and Theranos combined times a million. The audacity of such a claim is ridiculous to me. And to say it with such certainty.
Repricing inflation expectations and improving economic performance (real yields). If rates were being suppressed, we would see the 10yr muuuuch lower. Expectation inflation is about 2-2.3% on average over the next few years. On a ten year basis inflation will probably average closer to 2%.
The reversal in outlook on the USD started with a killer jobs report on last NFP day. I think it makes more sense to look at MoM inflation rather than YoY for now. Looking at YoY could cause things to get skewed with all the corona weirdness when the pandemic was new.
The CPI print itself is not forward looking. You should read ISM PMI reports to gauge how mfg and svcs firms are dealing with price pressures.
The perception that there is only 2% annual inflation does not hold water. If it did, that would mean there's has been only 42% inflation since 2000, plus some compounding. Since 2000, housing, rent, utility bills, all insurances, food, and practically everything else under the sun, has at very least tripled, and that's conservative, very conservative. The governments formula for inflation is specifically designed to show minimal inflation. It has very little if anything to do with real consumer inflation. Something no one has ever posted here... is that annual raises in social security checks reflect the governments inflation rate, not the real consumer inflation rate, last year a little over 1.5%. Just imagine if everyone on social security got a 6-8% raise in there benefits every year. The social programs like S.S., Medicare, etc., would have gone down faster than the Titanic. Another thing you should be perfectly clear on, it's not so much a Democrat or a Republican government. It is a Wall Street government, plain and simple. If either didn't need your vote to take power, they would just as soon throw you under the bus. The masses are given crumbs, while the hogs just enlarge the size of their trough.
Let's not forget the political side of all this. Is Biden's America going to be an economic disaster?