Inflation increased, what does it mean to me?

Friday the Fed’s preferred inflation measure PCE came in WAY higher at 3.6 vs estimates of 2.2 (remember their target is 2%). This reading is obviously concerning for inflation watchers and would normally send bond traders into a selling frenzy. For now the Fed’s “transitory” message seems to have everyone lulled into a temporary sense of security. Will have to see how long that can last!.

Tuesday ISM Manufacturing posted very strong reading of 61.2 vs estimates of 60.7, anything > 50 is considered expansionary.

Wed the Fed Beige Book was released. This is a summary of economic data from the 12 Fed Districts and is used in monthly meetings. Most districts reported moderate growth siting manufacturing and home builders struggling to obtain materials and workers. Business owners also reported the struggle to hire workers and needing to pay hiring bonuses and higher wages to attract the help they need (read- this could cause wage inflation).

Cyber attackers are finding new victims to prey on. 2 weeks ago they shut down a gasoline pipeline company and this week JBS a very large meat packer. No word whether JBS paid a multi million dollar ransom BUT they did confirm plants have resumed operations. As if supply chains weren’t challenged enough now the bad guys are disrupting things too!!!

Lets meet with me for more details and strategy of your housing needs.