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Can the Fed control inflation? That is the billion dollar question. They may raise rates by 75 bps today, that appears likely. Could be 100 bps. Any less than that, and the market will likely dump on inflation fears. We all know CPI inflation is now at 8.6%. This next chart shows a more likely glance, at what real inflation is:
These price increases average 18%. That is close to the average US real inflation number presently. We believe it ranges from 17% to over 20% (CA, NY, MA).
Looking at the buying power of the US Dollar since it was established in 1913. It appears the USD has lost 98% of it’s buying power in 109 years!: