Warning Sign: Inflation Hits Three Decade High In October

OCTOBER CPI UP 6.2 PERCENT YEAR OVER YEAR

CPI comes in much higher than expected. The expectation was up 5.9 percent and that up from last months number of 5.4 percent. Obviously, everything is accelerating, and this is in no way transitory in nature as the Fed believes. This has a major impact on the lower wage earners and small business owners across the US.

Regardless, the Fed seems to be steadfast in keeping interest rates where they are. Even the price of Ten-Year Treasury is confirming that these rates are here to stay.  At the moment the stock market isn’t reacting as it should as it is also comfortable with where interest rates are.

The price of Gold and Silver is rallying in a big way, trading thru stops and option plays are very active.

It looks inevitable that a no reaction position by the Fed will eventually come back to haunt them. In the meantime, it seems that the Fed policy is being dictated by the White House and they too will pay a price if this continues. The line has been drawn in the sand. What will the future hold is anyone’s guess.