Who are you gonna believe? Joe Biden, or us?

We’ve been saying since the start of the year that all the happy talk of Bidenflation receding was a lot of bunk.

As we’ve been warning week after week: with gold prices up to $2,300 an ounce, commodities up 15%, gas back at $3.50 a gallon, and more global supply chain problems (can we please exterminate the pirates?), we were predicting inflation trending to 4 to 5% not down to 2%.

How did Wall Street get so hoodwinked with such irrational exuberance?

Even the media is in on the conspiracy: nearly every headline announced year-over-year inflation of 3.5%. But for the first three months of 2024, both core and overall inflation were running at an annual rate of 4.6%.

Biden yesterday said he still expects the Fed to cut rates, in what is either delusional or an attempt to bully the Fed. But futures markets dropped the chance of a rate cut in June yesterday from 57% to 19%. There is NO CASE for a rate cut now.