The Federal Reserve is creating a monster with inflation, and all you have to do is look at the CPI data for April to see the truth of it. 

The Consumer Price Index (CPI) measures the average change over time in prices paid by consumers for goods and services. 

And one of the most pressing questions on Wall Street right now is if inflation isn’t a concern —  like the Fed wants you to believe — or whether it will distort and pop every asset bubble in the market.

Joy of the Trade’s Jeff Zananiri has a feeling it’s going to be the latter…

Wednesday morning, the inflation CPI data for April was released… and WOOF! The numbers exceeded expectations in the worst way possible. 

The Fed Has Been Lying to You — Just Look at April’s Inflation CPI Data

In April, the CPI for All Urban Consumers rose 0.8% (expectation was 0.2%) on a month-to-month basis, and rose another 4.2% (expectation was 2.9%-3.9%) over the last 12 months.

That’s a 2.6% rise annually… That’s also the largest year-over-year increase since August 2018, the fastest spike since September 2008, and the biggest monthly gain in inflation since 1981.

The years 2008 and 1981 should ring a bell for some of you. Let’s just say they weren’t great for investors…

But if that wasn’t crazy enough, Jeff and I dug a little deeper into those numbers and saw something we weren’t expecting: used cars.

The prices of these things are key inflation indicators, and boy are they showing there’s some major inflation in the stock market. 

In one month, the price of used cars and trucks increased by 10% — surging 21% year-over-year. 

This tells us that the amount of new people who can afford new cars is shrinking, and they’re turning to the used-car market — which is slowly getting out of line with prices.  

However, it’s safe to say the year-over-year comparisons will look bad for the next few months because of the pandemic’s impact on shutting down the U.S. economy in 2020.

Perhaps that’s why the Fed and many investors want to dismiss the inflation CPI data for April. 

But it’s that line of thinking and inability to take action that’ll lead to completely stunting all of our economic recovery…

Check out our short video below to learn more about inflation CPI data for April and what it means for the economy. Be sure to share your thoughts in the comments section below.

Don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video! 

 

P.S. I just caught wind of Chuck Hughes announcing the biggest project of his entire career: the Triple Threat challenge…

A chance for everyday traders to completely transform their lives over this summer…

He’s revealing the secret behind the strategies that gave him the chance to grow a small $5,900 account into more than $212,217 — in just two years!

So he’s equipping people with the tools necessary to bag the returns of a lifetime… 

And to become championship-level traders on their own!

Check it out here. 

What to Expect as FAANG Stocks Prepare to Report

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The major indexes slumped as investors brace for a busy week of earnings and the Federal Reserve’s latest interest rate announcement — and more in Monday’s stock market recap. The Federal Open Market Committee meeting starts on Tuesday, with the Fed expected to...

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