As Bitcoin’s Yearly Inflation Rate Dips to 1.77%, BEA Data From May Shows US Inflation Fears Are Legitimate – Economics Bitcoin News

The U.S. economy is looking stagnant according to data stemming from the Bureau of Economic Analysis, as core personal consumption expenditures (PCE) jumped 3.4% in May from a year prior. The recent PCE spike is the highest year-over-year basis change since 1992 and the statistic is fueling inflation concerns.

Amid ‘Never Ending’ Market Rallies, Core Inflation Indicator Jumps Highest in Close to Three Decades

After more than a year of lockdowns and business shutdowns alongside the massive monetary expansion introduced by the Federal Reserve, economists are worried about rising inflation. Last week the Fed revealed its possible future interest-rate decisions and global markets shuddered for a couple of days and then recovered. founder, technical analyst, and macroeconomic commentator, Sven Henrich, jokingly wrote about the manipulated markets in a blog post called “The Never Ending Rally.” Henrich remarked on how the president of the Federal Reserve Bank of Minneapolis Neel Kashkari made markets feel better on Friday.

“Last week’s trial balloon by the Fed, if that was the intent, made it clear again that this market runs not only on easy money, but also on the continued expectation of easy money,” Henrich wrote. “So the Fed followed its long adopted approach to monetary policy: Go in big, go in fast, and go out excruciatingly slow for fear of the consequences of upsetting markets.”

Fernando Martin, research officer and economist at the St. Louis Fed noted that “estimates project annual inflation above 2% for three months (March, April, and May) and converging back to the pre-pandemic average towards the end of the year.”

While Wall Street is getting the benefits from the Fed, Americans returning back to work are facing an assault on their purchasing power. Even retirees are getting hammered with inflation woes as Barron’s award-winning financial columnist Gail MarksJarvis explained on…

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