Inflation, The Fed and What Comes Next.

Inflation figures came out this week and they were absolutely brutal. April CPI was startling enough, but the Producer Price Index (PPI), which is an indicator of inflation in the pipeline was shocking. Oil reserves are running down to dangerously low levels and it’s clear now that there’s no immediate resolution to the oil crisis, so we’re about to realize our worst economic fears. We take a look back at our predictions from nine months ago to see how accurate they are and to build on them for what comes next. Against the backdrop of this horrible inflation data, we have a new sheriff in town at the Federal Reserve. The man whose job it is to theoretically tame inflation has no tools in the box to deal with this level of crisis. The real question is whether he ever intended to.