Here’s the thing: The Fed right now is wearing blinders, and it only cares about bringing down inflation, my colleague Paul R. La Monica writes.
The Weed Gummy TheoryThere’s an analogy offered by investment analyst Peter Boockvar last month that I can’t stop thinking about.
He compared the Fed to an eager but inexperienced consumer of weed gummies, which, notoriously, take longer than anyone expects to kick in.
Bankruptcies: Rate hikes make it more expensive for companies to pay down debt, increasing the risk of corporate bankruptcies and defaults.
The so-called PPI, which tracks what suppliers charge other businesses for goods and services, showed prices going up 8.5% from a year ago.