“The Fed is in a real pickle. … Being on the tightening side of monetary policy is no fun.”
Here is this week’s “Cents and Sensibility” podcast from inflation guru Michael Ashton. I am a big fan of this podcast and Ashton’s work because he has deep knowledge of how inflation works, but can explain complex issues in an entertaining way.
His podcast intro: “Inflation continues to show broader and deeper, and now is entering the general business and consumer mindset. In this episode, Inflation Guy talks about the idea that year-over-year inflation may peak soon, but probably won’t go back to the old 2% level. In the long term? Well, that depends on whether the Fed can channel Paul Volcker, and worry less about breaking eggs and more about whether we can afford eggs.”
Have a listen:
You can subscribe to this podcast in all the traditional ways, or find it here.
Follow Ashton on Twitter at: https://twitter.com/inflation_guy
Who is Michael Ashton?
His audiences know him as the “Inflation Guy.” He is a pioneer in the U.S. inflation derivatives market. Before founding his company, Enduring Investments, Ashton worked in research, sales and trading for several large investment banks including Bankers Trust, Barclays Capital, and J.P. Morgan.
Since 2003, when he traded the first interbank U.S. CPI swaps, and 2004 when he was the lead market maker for the CME’s CPI Futures contract, he has played an integral role in developing new instruments and methods for accessing and hedging various inflation exposures. In 2016, Mr. Ashton published What’s Wrong With Money? The Biggest Bubble of All. He is a graduate of Trinity University and lives in Morristown, New Jersey.
Have a question? Get the Inflation Guy app in the Apple App Store or Google Play, or email InflationGuy@enduringinvestments.com.
Treasury Inflation-Protected Securities 
Following the lead of the late, great, John Bogle I pay zero attention to fellows like this. The Fed chiefs know what they plan to do. And now it seems several have been trading on that information too.
When I was at Bankers Trust, Paul Volcker once visited and told us “you should stop worrying about what the Fed is going to do, and worry more about what the Fed SHOULD do.” (And how what they’re going to do diverges from what they SHOULD do.)