Consumer Price Index for All Urban Consumers: All Items in U.S. City AverageFRED
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May 2021 CPI is released today and with a 0.7% increase month to month, it is now 269.195. The CPI (YoY) is now at 5% which is the highest in the last 30 years..! The most important thing is the change from linear growth to exponential rate and passing above the 3 standard deviations of the regression line! which means we are facing a phenomenon with a 1.5 in 1000 chance of happening! It would be wise to Bet on higher inflation..! Micheal J Burry showed everyone that he is a living legend in the financial world..! what should we do? what are the solutions? 1- Gold: preserve purchasing power 2- Commodities: already adjusted 3- Real Estate: will be hot for the next 2 years 4- Stocks: Thoe related to commodities or having price gauging ability, and banks.
I believe FED is targeting 6% to boost employment and solving the US debt crisis in the coming years.
They can not decrease the money supply because it will lead to a higher unemployment rate, but at some point, they may increase the interest rates to control the uncontrolled inflation! please check my US dollar index analysis which shows in the next 5-6 years US dollar could lose up to 30% of its power!