US inflation normalizing higher is a 'crisis': Bear Traps Report founder
The core PCE rose 5.2% in March
US inflation is a ‘crisis’: Expert
The Bear Traps Report founder and editor Larry McDonald weighs in on the March PCE price index and inflation.
During an interview on "Mornings with Maria" expert Larry McDonald reacted to the March 2022 PCE price index, saying that U.S. inflation is a cause for concern if it normalizes at a higher rate around 4 or 5%.
THE FED'S FAVORITE INFLATION GAUGE ROSE 5.2% IN MARCH
LARRY MCDONALD: If inflation normalizes, everybody knows like a 2-year-old can tell you it's going to come down from a record high rate base. Right. But if it normalizes at a higher [rate], there's probably $2 trillion of assets that are in the wrong place. So the previous decade, we had BREXIT's trade wars, multiple COVID's, we had inflation normalizing at 2%. So everyone knows it's not breaking news. Inflation is going to normalize, lower. But if it normalizes at 4,5 instead of 2, there's 2 to $3 trillion that's misallocated. And this is a crisis and people have to wake up to this fact.
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March core PCE hits below estimates
March core PCE is up 5.2%, hitting below estimates of 5.3%. FOX Business' Cheryl Casone with more.