🚨 Right now, you’re seeing the same inflation headline everywhere: “CPI surges to 4.2%….Fed hikes coming!” Please take 30 seconds to read this and understand what’s actually happening… Yes, May CPI hit 4.2% YoY. But energy alone drove over 60% of the monthly. Core goods actually got cheaper…Meaning, mild deflation in goods. The headline you are seeing is a short-term Iran war oil shock, not broad inflation. Most importantly, Fed Chair Kevin Warsh wants trimmed-mean measures that strip out exactly these geopolitical spikes and one-offs. He said at his confirmation hearding, “What I’m most interested in is what’s the underlying inflation rate, not what’s the one-time change in prices because of a change in geopolitics or a change in beef.” Not saying the higher CPI number is nothing, but there’s more to it.(Dan Gambardello)