Rebel Capitalist News New INFLATION Data Shocks The Market (What You Need To Know)
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Aug 15, 2025 The podcast dives into the unexpected surge in the Producer Price Index, raising concerns about stagflation and the Federal Reserve's challenges. It explores how tariffs might influence inflation and examines the historical context of current economic uncertainties. Listeners gain insights into the potential risks for consumer purchasing power and corporate profits as inflation impacts the economy.
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Producer Prices Shock Markets
- The July PPI jumped 0.9% month-over-month, the largest gain in ~3.5 years and well above expectations.
- Core PPI and year-over-year producer inflation also accelerated, signaling rising upstream price pressure.
Why The Fed Can't Fix Tariff Price Shocks
- George argues the Fed shouldn't overreact because tariffs-driven price adjustments are outside monetary policy control.
- He says only an accelerating inflation trend (not a one-time passthrough) should change Fed rate priorities.
Services Rise Makes Tariff Theory Murky
- Services PPI rose 1.1% while goods rose 0.7%, complicating a simple 'tariffs push goods only' narrative.
- George says this mix means tariffs alone likely don't explain the full PPI jump.