Final Countdown? PPI Final Demand Declined To 1.3% In October As Gasoline PPI Plunges -13.5% YoY, Most Since Covid Economic Shutdowns (No Chance Now Of Further Fed Rate Hikes) – Confounded Interest – Anthony B. Sanders

Is this the final countdown?

US Producer Price Index (PPI) Final Demand plunged the most since the COVID lockdowns. After four months of re-acceleration, US producer prices tumbled in October – down 0.5% MoM, the biggest drop since April 2020. This dragged Final Demand PPI YoY down to 1.3%. Primary drivers? Rapidly declining gasoline prices (-6.5% in October).

The other driver? M2 Money growth. Notice that PPI Final Demand is slowing as M2 Money growth goes negative.

Gasoline PPI plunged -13.5% YoY in October. No it wasn’t Biden opening up America to energy indepence. More like the impact of M2 Money growth being negative.

But never fear! The Federal Reserve is expected to stop raising rates and, in fact, start cutting rates in 2024 as the economy is sagging fast.

Don’t worry. Sleepy, stumbling Joe Biden is meeting with China’s Xi.

Treas Sec Janet “Magic Mushroom” Yellen meeting with China’s Xi and Biden’s likely replacement Oily Gavin “Gruesome” Newsom.