Funny Numbers Correction
It turns out that the index devised by ECRI is not an inflation rate, it is a leading indicator: a turning up of this index would indicate a future pick up in the CPI.
So saying that the ECRI index was indicating an annual inflation rate of 9.9% was incorrect. It is actually the percentage change in the expected inflation rate.
It is still apparent that the ECRI index has deviated substantially from the Fed funds rate, but the conclusion that the Fed has kept rates low in the face of rising inflation is not as strong.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter