2 Big Signs Indicating Stagflation Is Imminent

 | Mar 23, 2023 02:59PM ET

The Fed raised rates by 25 bps. The decision was unanimous. The terminal rate projection is unchanged at 5.1%

FOMC statement modifies guidance:

“The committee anticipates that some additional policy firming may be appropriate.”

My first tweet this morning before the market opened:

“I feel pretty certain Powell goes 25. Announces they're willing to keep raising at that rate as jobs are strong, the economy ok and banks aren't in a credit crisis. However, as data dependent, they could change course accordingly. $SPY remains in a trading range. Until the next fracture appears”

“And then there’s $sugar looking like it’s about to continue the rally higher. Food prices will remain elevated. And the Fed remains stuck between the damage done but the root of inflation far from fixed.”

My tweeted response after the FOMC?

“5% yields create more stress to the labor market. Does nothing for riding food prices and global inflation. Silver is outperforming gold. Sounds like Stagflation”

Here are two signs that indicate stagflation could be taking hold:

h2 1. Silver is Beginning to Outperform gold/h2

The daily chart of silver shows the price rising further away from the 50-daily moving average in blue.