GORDON JOHNSON SLAMS FED FOR EXPANDING BALANCE SHEET AS INFLATION SURGES GLJ Research's Gordon Johnson accuses the Fed of fueling inflation while claiming to fight it. 🔸 October CPI: Headline +0.4%, core +0.3% — the third consecutive core reading of at least 0.3%. 🔸 Persistent inflation: Johnson estimates headline inflation is approaching 4% YoY, nearly twice the Fed's target. 🔸 Cumulative damage: CPI is 14.8% above where prices would be under a 2% inflation path since March 2020, according to his calculations. 🔸 Producer prices: Headline PPI above 6% YoY, with core near 4%. 🔸 Fed balance sheet: Johnson says Treasury purchases have added roughly $210B since quantitative tightening ended in December 2025. 🔸 Real wages: October hourly earnings rose 0.4%, matching inflation and leaving real wage growth flat. Johnson's warning: The Fed is raising interest rates while simultaneously injecting liquidity — tightening with one hand and easing with the other. Source: Gordon Johnson, November 10, 2026. Figures and interpretations attributed to Johnson.(彭博社)