Inflation Soars More – Fed Sure To Hike In March


1. Overview – Inflation & the Fed Dominate the Headlines

2. U.S. Inflation Jumps To 40-Year High in January – Why?

3. Fed Big-Shot Calls For Much Bigger Initial Rate Hike

4. The Huge January Jobs Report Requires A Closer Look

Overview – Inflation & the Fed Dominate the Headlines

Some weeks, it can be hard to find a topic I think is really interesting to write about. Then there are other weeks when so much is happening I don’t know where to start. This is one of those weeks. If I had to pick a theme which has been hogging the spotlight recently it would be rising inflation and the reactions to the highest level of price increases we’ve seen in 40 years.

As everyone reading this knows, the Fed is virtually certain to raise short-term interest rates at its upcoming policy meeting in March and most likely at the next several meetings after that. The only question now is how high the Fed will have to hike rates to get inflation under control – and that is a question subject to a great deal of debate. So, that’s what we’ll focus on today.

I also want to take us back to the unemployment report for January which was released on Friday, February 4 showing a whopping 467,000 new jobs created, which was a giant surprise, as I will discuss below. Economists and forecasters were stunned.