Economy

The Fed’s ‘Moment of Truth’ Approaches

The Federal Reserve is in a conundrum because it should have cut in June. However, a rate cut should be forthcoming.
The Fed’s ‘Moment of Truth’ Approaches
President Donald J. Trump announces Jerome Powell’s nomination as Fed chair on Nov. 2, 2017. Public Domain
Louis Navellier
|Updated:
0:00
Commentary

Last week’s big news concerned inflation, with a deflationary Producer Price Index (PPI) and a slightly inflationary Consumer Price Index (CPI) revealing two different views. Last Wednesday’s deflationary PPI stems from the products imported from China, due to the deflation there, while the CPI’s shelter costs (owners’ equivalent rent) remained stubbornly high in August at +0.4% (a 5% annual rate). At the same time, lower crude oil prices helped depress both wholesale and consumer price inflation, and last Monday, OPEC+ agreed to boost crude oil production to 137,000 barrels a day in October, depressing prices more.

Louis Navellier
Louis Navellier
Author
Louis Navellier is chairman and founder of Navellier & Associates in Reno, Nevada, which manages approximately $1 billion in assets. One of Wall Street’s renowned growth investors, Navellier writes five investment newsletters focused on growth investing. In addition to appearing on Bloomberg, Fox News, and CNBC giving his market outlook and analysis, he has been featured in Barron’s, Forbes, Fortune, Investor’s Business Daily, Money, Smart Money, and The Wall Street Journal.
twitter