KRL

Fed Raises 75 Basis Points; Food Price Inflation Continues to Wreak Havoc on Consumer Budgets

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Image Source: Federal Reserve The Fed upped its key benchmark rate to the range of 3%-3.25% on September 21, but it may not be enough to stem the rise in inflation. We think the market has further room to fall. By Brian Nelson, CFA We think the Fed is looking to crush the economy and break the will of businesses to raise prices. Unfortunately, there is only so much that hiking the federal funds rate can do, and much of the inflation that is hurting the consumer is coming in the form of food prices, and this doesn’t look like it will abate anytime soon. I had warned about a coming market “flush” in a late August video, in part … Read more

Nelson Nailed Food Price Inflation Risks; Markets Heading Lower

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Image Source: Liz West “Milk was up 17%, poultry up 15.9%, while eggs were up 39.8% in the August CPI report.” By Brian Nelson, CFA Hi everyone: I put together a video several weeks ago on August 27, explaining how consumers were tapped out due to inflationary squeezes, particularly at the grocery store, as a big reason for being incrementally more bearish on the equity markets. The August CPI report, released September 13, showed that consumer prices advanced 8.3% on a year-over-year basis and are still accelerating, increasing 0.1 percent from July, where the pace was unchanged. Milk was up 17%, poultry up 15.9%, while eggs were up 39.8% in the August CPI report. We don’t think the market was … Read more