Don’t Let the Fed Fool You... It’s Losing the Fight Against Inflation

[Inside Wall Street with Nomi Prins]( Don’t Let the Fed Fool You… It’s Losing the Fight Against Inflation By Nomi Prins, Editor, Inside Wall Street with Nomi Prins Inflation is proving sticky. That’s what the latest Consumer Price Index (CPI) reading showed earlier this month. If you’re a regular reader, you’ve heard me say this before: The Fed wants to control inflation – but it can’t. The latest CPI report and current energy market trends provide good insight into why that's the case. I’ve been studying the Fed for more than 20 years since I walked away from Wall Street. And I’ve learned that the Fed doesn’t have as much power over the economy as it thinks it does. So today, I’ll shed some light on this matter. But first, let’s understand the numbers from the September inflation reading. Recommended Link [WARNING: 110 Banks Preparing for Digital Dollar]( [image]( If you have any money in the U.S. banking system, pay close attention because… Bank of America is warning its clients that ALL checking accounts are likely to be replaced with digital dollars soon. And it’s not just Bank of America. This former VP of a major U.S. investment bank just released [this list with more than 110 banks that are preparing to do the same.]( Is your bank on the list? [Click here to see the full list.]( -- Losing the War on Inflation Despite the Fed’s war on inflation over the past year, high prices are still hurting your cost of living. Core inflation saw a slight pullback to 4.1% from 4.3%. And yet, the headline inflation figure remains entrenched at 3.7%. Taking a closer look, food prices rose by 3.7% compared to last year. The cost of shelter went up 7.2%. Inflation for services – like healthcare and public transportation – came in 5.7% higher. But what really jumped out at me from the report was energy. After a period of decline, energy prices climbed up 1.5% between August and September. Energy powers America’s industries. The food sector is one of them. You can’t produce pesticides, fertilizer, and food packaging without energy. You also need energy to transport food to the store. Trucks and trains run on diesel; planes run on jet fuel. There are millions of them crisscrossing the nation each day to get produce to the market. So, when energy prices go up, it's only a matter of time before food gets pricier too, as producers pass along their swelling energy bills. There’s usually a bit of a lag, but it's a given. All this tells me we’re looking at the prospects of higher inflation down the line. And the Fed has very little control, if any, over that. Recommended Link [Reverse ‘money machines’ popping up across America]( Machines like the ones in this picture are popping up all across America. [image]( If you’ve been to a concert venue, stadium, or airport, you’ve almost certainly walked by one without knowing. The experts are calling it a ‘Reverse ATM’. They’ve been installed at places like Citizen’s Bank Ballpark in Philadelphia… They’ve even been used at the Super Bowl. Why are these machines suddenly appearing out of nowhere? And what does it mean for your money? We’ve recently arranged an interview with former Goldman Sachs managing director, Dr. Nomi Prins, to get her take. There’s nobody in America who’s more aware of the inner workings of the banking system. In the interview, [Dr. Prins explained these strange ‘reverse ATMs.’]( And she said she expects them to play a key role this Summer as our nation’s financial system is overhauled for the first time since 1971. According to her research, many Americans will be blindsided by what’s to come. BUT, folks who understand the ‘Reverse ATM’ phenomenon before it becomes obvious to the average American could actually profit in the weeks ahead. To help folks prepare, she’s recorded a briefing that explains exactly what she sees coming, how it will play out, and how much time you have to prepare. [Click here now to see Dr. Prins’ free presentation.]( -- The Fed Can’t Control the Real-World Prices That Matter This goes double for oil, a commodity that helps power the world’s major economies. As I write this, oil prices are sitting at a near 12-month high – the highest levels of 2023 so far. That’s due to concerns of Middle East oil supply disruptions, plus ongoing production cuts from OPEC and Russia. These factors have nothing to do with the Fed. And yet, they hurt your wallet in a big way. If you have pumped gas recently, for example, you’ll know what I’m talking about. In Los Angeles, where I live, the average gas price hit $6 for the first time this year. Nationwide, gas prices are just below 2023 highs. During this same period, the Fed has raised rates by 1%, to the highest level since 2007. And it claims it’s done so to fight inflation and help Main Street America. But in reality, oil prices determine how much you pay at the gas pump. The Fed has zero control over that. And the cost of gas is not the only thing affected by rising oil prices. Remember, food prices are also linked to energy prices. That’s what the chart below shows… [Chart] As you can see above, over the last decade, global food and oil prices have moved practically in tandem. In fact, research shows that changes in oil prices can explain more than 60% of the variation in food prices. The Cruel Irony Behind the Fed’s Inflation Target So, given all the above, how can the Fed still realistically aim for its 2% inflation target? Well, this might come as a surprise to some, but the Fed doesn’t use CPI as its inflation benchmark. It uses the core Personal Consumption Expenditures (PCE) Price Index. The core PCE excludes food and energy prices when measuring the cost of goods and services in the U.S. The Fed claims that this allows it to gain a “clearer insight into the underlying inflation trends.” But ironically, the Fed excludes two of the things that Americans depend on the most. The Fed isn’t even interested in stabilizing the real-world prices that matter. Recommended Link [The only stock to keep (revealed below)]( [image]( Jeff Clark has been trading stocks for nearly 40 years. He knows the market. He predicted the crashes of 2008, 2020, and 2022. He’s helped his readers avoid huge losses… And still had 13 gains last year alone. He’s done it by avoiding 99.9% of all stocks… Only trading this one, [revealed in this video above.]( Now Jeff is helping his 23-year-old son overcome his huge losses in crypto and tech stocks… By using this same method. [Watch how he plans to win back all of his son’s losses with this one ticker revealed here.]( -- What This Means for Your Money Today The good news is, you can turn this period of distortion into an opportunity. I see energy prices continuing to rise from here, regardless of what the Fed chooses to do next. A simple way to position yourself to profit is with an exchange-traded fund (ETF). ETFs carry less company-specific risk than investing in individual companies. One fund we like is the Energy Select Sector SPDR Fund (XLE). XLE mirrors the S&P 500’s energy sector. It holds 25 names in the energy sector, including oil giants like ExxonMobil (XOM), Chevron (CVX), and ConocoPhillips (COP). It also includes other firms engaged in energy production and distribution, including natural gas. And other companies offering services to the energy sector, such as drilling, production, and oilfield services. Another broad energy fund we like is the iShares Global Energy ETF (IXC). It holds 53 names in the energy sector, including ExxonMobil and Chevron. In fact, it holds a lot of the same names as XLE, with a clear focus on oil. Of the two, we like XLE better. It has: - A lower expense ratio (0.10% vs. IXC's 0.44%). - More assets under management ($40 billion vs. IXC's $2 billion). - And significantly higher daily trading volume (24.3 million shares vs. IXC's 2.5 million). Depending on what you’re looking for, and how much you’re willing to pay in fees, either fund is a great place to start your search. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. The Fed is incompetent, and yet it just overstepped its boundaries in a major way. In July, it started laying the foundation for a complete and total overhaul of our financial system. It’s a scheme to enact enormous change to the appearance and value of our money – in a way we haven’t seen since 1971. I recently published a video report with my findings. These changes will impact the savings of millions of Americans, especially those with more than $2,500 in the bank. To learn more about what’s coming – and get my wealth-preservation playbook – [watch my full investigative report for free, right here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG Will you be using this opportunity to try to profit from ETFs? What other effects do the rising energy prices have on our economy? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [In 20 years, this little-known trader didn’t have a single losing year…]( In his video, Market Wizard Larry Benedict reveals how to make all the money you need, in any market, using a single stock. [Click here to watch the video]( and get the name and ticker of the one stock that could put you on the road to financial success. [Click here to learn more.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. All rights reserved. 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