Thoughtful Money with Adam Taggart Stephanie Pomboy: Don't Let The Latest Inflation Data Fool You, It's Still A Threat
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Jan 20, 2025 
Stephanie Pomboy, an insightful economic analyst, delves into the complexities of inflation and market dynamics. She warns against the false optimism stemming from recent inflation data, spotlighting the direct link between rising energy prices and consumer sentiment. Pomboy discusses the looming risks related to economic policy shifts and their potential impact on the stock market. With a keen eye on market reactions to declining equity prices, she sheds light on the challenges posed by high energy costs and interest rates, suggesting a turbulent financial future.
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Misguided Market Optimism
- The market's positive reaction to slightly softer CPI data is premature and misguided.
- Oil prices, a crucial inflation driver, are rising despite global slowdown and potential geopolitical easing.
Oil's Impact on Inflation
- Oil prices are a leading indicator for CPI, demonstrating a lag of six to nine months.
- Higher oil prices drive up the cost of everything, even when energy is excluded from CPI calculations.
Consumer Spending and Debt
- Consumer spending has not increased; they're buying the same quantity, just at higher prices.
- Credit card borrowing has declined significantly, indicating consumers struggle with current debt levels.