The Fed’s most frequent lament is that no matter how many trillions in bonds (and stocks and ETFs) it buys or how much liquidity it forehoses into the market, it just can’t push broader inflation higher.
Well, here’s an idea: maybe all the central-planning megabrains at the Marriner Eccles building and 33 Liberty Street can take a break from whatever circle jerk they are engaged in right now, and look at the latest Case Shiller numbers which showed not only that home prices surged at the fastest pace in six years, rising nearly 8% compared to a year ago…
… but that for the first time since the financial crisis, the annual price increase in every major US MSA (and according to Case Shiller there are 20 of them) rose by at least 6% Y/Y (in the case of New York) and as much as 12.7% in Phoenix, meaning that the average home prices across all of the US is now rising at three times the Fed’s own inflation target. Read more…..
Chart of the Day
Viewers ask about American Airlines, Virgin Glactic and the outlook for DraftKings. With CNBC’s Melissa Lee and the Fast Money traders, Guy Adami, Tim Seymour and Dan Nathan.