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The John Batchelor Show

#MrMarket. Inflation not solved; deficits not solved. Veronique de Rugy, Mercatus Center

The John Batchelor Show

John Batchelor

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4.62.7K Ratings

🗓️ 13 October 2023

⏱️ 9 minutes

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Summary


#MrMarket. Inflation not solved; deficits not solved. Veronique de Rugy, Mercatus Center
https://www.wsj.com/economy/central-banking/cpi-report-september-mild-inflation-862679f7?mod=hp_lead_pos1

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0:36.2

This is CBSI in the world, I'm John Bachelor. The American economy, critical to the road ahead if there's

0:43.2

to be a war economy or not. The American economy is waiting on the Federal Reserve and the Federal

0:48.8

Reserve is waiting on data. Well, data arrives routinely. This inflation report says the Wall Street

0:56.2

won't let the Fed declare victory. Subhead, the consumer price index CPI highlights the risk

1:04.3

that inflation is settling out at 3 percent above the Federal Reserve's 2 percent target.

1:10.3

To help me interpret these strange sentences, it doesn't sound positive. I welcome Verneek

1:16.2

to receive the Mercatus Center, my guide on the Federal Reserve's intentions to get to 2 percent

1:23.8

and also the Congress's intentions not to help the Fed and to continue to spend money because

1:30.2

Verneek, a very good evening to you. Your opinion of the inflation report today, I observed

1:37.8

only the way the markets reacted, which was a little this, a little that, not very happy.

1:43.0

The PPI yesterday, the producer price index also made the market unhappy. Is there enough

1:48.6

unhappiness there for the Fed to show its hand or are they still going to wait for more data?

1:53.5

Good evening to you. Good evening. So I think I think they're unhappy because

2:00.1

they're thinking that contrary to the party they threw last month about inflation being conquered

2:11.7

and hence interest interest rate not needing to go back up. Again, this threw a little water

2:18.1

on that celebration and I think there is because of these numbers, there is probably a sense that

2:27.7

inflation may not have been conquered after all. I mean, I'm not surprised. I don't think

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