US inflation slows to 6.4%, but price pressures re-emerge

[bucolic_frolic]

1. Inflation's persistence has not been a popular message here on DU

Every time I post that the Fed is behind the curve and needs to raise interest rates more, I am lambasted that inflation is improving and there is little inflation to worry about. Presumable they're worried about Biden and the economy and jobs. But my opinion remains that the Fed will not squelch inflation without 10% interest rates, and that this is what they did in the 1970s, the war was already won, no worries, and then inflation returned with avengence. Remember Gerry Ford's W.I.N. buttons? Whip Inflation Now. Inflation persisted for an additional 6 years or so.

This week's promo from a well-respected economist says recession will begin mid-year. Last month he opined that the S&P 500 will bottom, on average, 16 months after the Fed pivots. We're 4-6 months away from that. So recession could well persist into election month, November 2024. Ahem.

But go on believing that the inflation problem is behind us. Just will it away. MTG will prove less persistent than inflation.