Bank of International Settlements Issues Strong Warning on Inflation

By Tom Burnett CFA On June 26, 2022, the Bank of International Settlements issued its 2021-22 Annual Report, along with a strongly worded warning about the serious economic problems associated with inflation and its treatment. The BIS is based in Basel, Switzerland and acts as a central bank for the…

By Tom Burnett CFA On June 22, 2022, Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee. In his prepared remarks, Chairman Powell stressed that fighting inflation is the main Fed priority. The Fed uses the Personal Consumption Expenditures definition of price movements…

By Tom Burnett CFA On June 25, 2022, the Federal Reserve raised its Fed Funds rate by 0.75% to a range of 1.5%-1.75%. The vote was 11 to 1 with the dissenter voting for an increase of just 0.50%. The 75-basis point move was the largest since 1994. The Fed also reiterated its intention to...

By Tom Burnett CFA On June 14, 2022, the Bureau of Labor Statistics released the Producer Price Index data for the month of May. Prices rose 0.8% in May, following increases of 0.4% in April and 1.6% in March. Producer prices advanced 10.8% in the 12 months ending in May. In May, the Index for...

By Tom Burnett CFA On June 10, 2022, the Bureau of Labor Statistics released the Consumer Price Index information for the month of May. Prices rose 1.0% in May, compared to an increase of 0.3% in April. Energy prices increased 3.9% in May after declining 2.7% in April. Food prices rose 1.2% in May. For…