The Fed Is Wrong… And It’s Going to Cost Investors a Fortune
Graham Summers

The Fed just got a LOT of egg on its face.

For five months now, the Fed has refused to cut interest rates despite clear cracks showing up in the labor market, as well as companies like Southwest Airlines, Chipotle, McDonalds and even Walmart warning about a downturn in consumer spending.

The reason the Fed gave for sitting on its hands was that inflationary risks were rising due to the upcoming trade war. In simple terms, the Fed believed that the Trump administration’s proposed tariffs would result in corporations being forced to raise prices, which in turn would trigger another wave of inflation hitting the financial system.

Never mind that there is little if any evidence that this has been the case for other countries with  tariffs. The 400 economics PhDs, 150 research assistants, and other big wigs at the Fed were convinced that their models were more accurate than reality.

Well, yesterday’s inflation data put that delusion to bed. The Consumer Price Index (CPI) for April showed the LOWEST inflation level since February 2021.

Whatever uptick in inflation the Fed had imagined would appear has not. And in fact, inflation is trending down again.

So, inflation is at 2.4%… and the Fed has rates at 4.5% and is still running Quantitative Tightening (QT). This is EXTREMELY tight monetary policy and it’s highly likely something is going to break soon.

With inflation at 2.5% and rates at 4.5%, this means that real rates, or inflation-adjusted rates are at positive 2%. Historically, over the last 25 years, any time real rates have been this positive, it’s only been a matter of time before something broke in the financial system

See for yourself.

Anyone who listened to the Fed has missed out on some EXTRAORDINARY returns from the stock market. While many stocks were hurt by the trade war, certain key companies have already moved past it and are rocketing higher.

We detail four such companies in a Special Investment Report Tariff Proof Stocks: four high growth companies unaffected by the trade war.

As I write this ALL FOUR of them just hit new all-time highs.

Normally this report is only available to our paying clients, but in light of what’s happening in the markets today, we are making just 99 copies available to the general public.

To pick up one of the remaining copies…

CLICK HERE!

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

Graham Summers, MBA is Chief Market Strategist for Phoenix Capital Research, an investment research firm based in the Washington DC-metro area.

Graham’s sterling track record and history of major predictions has made him one of the most sought after investment analysts in the world. He is one of only 20 experts in the world who are on record as predicting the 2008 Crash. Since then he has accurately predicted the EU Meltdown of 2011-2012 (locking in 73 consecutive winners during this period), Gold’s rise to $2,000 per ounce (and subsequent collapse), China’s market crash and more.

His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Fox Business, and more. His commentary is regularly featured on ZeroHedge and other online investment outlets.

 

 

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