TSX:AX.PR.E - Post by User
Post by
Torontojayon Oct 25, 2024 1:11pm
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Post# 36282313
Core cpi
Core cpi Is still much higher than the target range at =~ 3.3% and the only reason cpi is lower is due to lower gasoline prices related to China weakness. 1 year earlier core cpi was at =~ 4.1% and so we can see it is coming down very slowly. If the Fed drops interest rates too quickly it will likely accelerate inflation which is what the bond market is sniffing out at the moment. The gold rally is also telling you this.
A hard landing could solve this problem. A no landing will likely accelerate inflation above target. I will leave with one final thought. Does the government wish to inflate their debt away? Higher inflation gives the government the ability to pay off old debt more easily than if we had, say deflation.