The Fed is about to make a HUGE policy ERROR!

https://tradersummit.net/is-current-...g-to-increase/

Blake Morrow of Traders Summit sits down with Eric Basmajain from EPC research to discuss the Fed, the current rate of inflation, and how they are about ready to make a big policy decision into a weakening economic backdrop. Eric discusses a lot of the internal numbers that has him concerned. From rate of inflation to supply issues. He unpacks a lot of information. On top of that, Evergrande has come to the forefront and he discusses what is concerning to him regarding the “Chane growth” story and what we have to pay attention to.

More from Eric Basmajain

Are You Worried About Rent Inflation?

Executive Summary

1. * The rate of inflation is starting to peak and move lower.
2. * The decline in durables inflation will more than offset the increase in services and rent inflation.
3. * The combination of durable inflation and commodity price inflation declining will push the rate of inflation lower.
4. * An inflation cycle downturn is beginning. Both real economic growth and inflation are set to decline over the next 3-6 months.

Are You Worried About Rent Inflation?
The Bureau of Labor Statistics “BLS” released the August CPI report, and the results showed a sequential decline in the rate of inflation.
The headline CPI index rose at a 6.2% pace in August when measured on a smoothed six-month annualized basis, down from 6.5% in July and 6.4% in June.
As a reminder, the “smoothed six-month annualized growth rate” has two distinct advantages over the more traditional year-over-year growth rate method. The smoothed denominator of the equation limits the base effect, and the six-month growth rate moves quicker than a 12-month growth rate. The result is a growth rate that moves similar to a year-over-year calculation but smoother and more timely.

Core inflation dropped markedly in August, falling to 5.0% when measured on a smoothed six-month annualized basis, down from 5.5% in June.

Over the last several months, the popular narrative argued that durable goods inflation would cool and services inflation would increase.
Durable goods inflation has indeed started to decline, falling from 20% in June to 16% in August, but services inflation has also peaked.
The rate of services inflation cooled to 3.5% in August compared to 3.8% in both June and July.

Source: BLS, EPB Macro Research The same factors that pushed durable goods inflation higher will now contribute to the decline.
The inflation rate of used cars surged to 59% over the summer and has now fallen to 38% in August.
Even if the price of durables remains flat in nominal terms, the year-over-year growth rate will still plunge from high double digits to 0% or lower.

Full Article @ https://tradersummit.net/are-you-worried-about-rent-inflation/