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  • US consumer inflation may have cooled in February but only slightly

    From cnbc.com

    Consumer inflation may have cooled off a little in February, but economists expect it is still running at a high pace. The consumer price index, expected Tuesday morning, is forecast to show headline inflation rose 0.4% last month, or 6% from the prior year, according to economists polled by Dow Jones. That compares to a 0.5% gain in January, and an annual rate of 6.4%. Core inflation, excluding food and energy, is expected to be higher by 0.4% and the annual pace is expected to be 5.5%. The report is expected at 8:30 a.m. ET. Just a few days ago, a hot inflation report would have increased expectations that the ... (full story)

It certainly has not cooled. Fed not going to have any room to lower rates, which means any stress's that manifest in Banking system can not be bailed out with lower rates.

Fed backstop from zero interest policy no longer possible. Banks will therefore be forced to tighten lending standards as they shore up loan portfolio. Free money ride via expansion of fractional reserve banking is done.
Tighter lending standards equals defaults for zombie businesses kept functioning via free money gravy train of past several years.

Draw your own conclusions but this has the makings of economic contraction incoming.
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