Hello, fellow Rebel capitalists hope you're well. So the new

CPI data is out. I gotta say, I'm a little bit surprised.

Well, considering yesterday's PPI number, I'm not surprised, but considering my long-term view,

I am, because most of you know that I got the inflation call right back in 2020 and 2021, and then I got the disinflation call right, but I thought

that inflation would hover right around a range until we had some sort of significant catalyst.

Either we have more disinflation because of a financial crisis,

stock market crash, banking crisis, etc.

Or the Federal Reserve comes out, or the, better said, the Federal Government comes out and does more deficit spending, more

stimulus, more stimulus, does something to increase velocity or to

increase the amount of purchasing power that people have in their back pocket, therefore it takes us to that next wave of inflation.

I thought there would need to be another catalyst before we would get out of the range, And this is when we got down about 3%.

So I thought the range would probably be,

you know, between 2.5% and 3.5

until we hit that next leg of whatever comes next. But according to today the

CPI exceeded expectations. So year over year we're up to 3.7.

So that was a bit of a surprise.

I did not expect that.

If you would have asked me, let's say three or four months ago.

So let's dive into the details

and understand what's going on

to try to predict what the Fed will likely do

as a result.

...