Rebel Capitalist News More Unexpected INFLATION Data!! Big Move In 10y Yield, New Trump TARIFFS
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Feb 14, 2025 The discussion dives into the surprising rise in the Producer Price Index and its implications for inflation. New tariffs spark conversations about U.S.-EU trade dynamics and economic forecasts. The significance of treasury yields as indicators of inflation and growth is examined, alongside the complexities introduced by government policies. Listeners are encouraged to engage with investment strategies, highlighting the impact of macroeconomic trends on market decisions.
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Market's Unexpected Reaction to PPI Data
- Markets reacted unexpectedly to higher-than-predicted PPI data, indicating potential easing inflation.
- This suggests short-term inflation but midterm CPI peaking around 3%, despite understating actual inflation.
George Gammon's Inflation Prediction
- George Gammon correctly predicted inflation in 2021 and disinflation in 2022.
- He anticipates CPI staying between 2% and 3.5% unless major catalysts like supply chain disruptions or stimulus occur.
Trump's Tariff Tactic
- Trump signed a reciprocal tariff plan but delayed implementation, confusing supporters who expected immediate action.
- Gammon questions this strategy given the promised benefits of tariffs and expresses uncertainty about Trump's intentions.