Economic Update on Inflation – PPI Report and Jobless Claims a Problem For the Fed

by | Mar 2, 2023 | Invest During Inflation | 30 comments

Economic Update on Inflation – PPI Report and Jobless Claims a Problem For the Fed




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The latest economic update on inflation shows that the Producer Price Index (PPI) report and jobless claims are becoming an increasing problem for the Federal Reserve. While the central bank has been focusing on keeping interest rates low, the rising costs of goods and services is creating challenges.

The PPI report for June showed a 1% increase, much higher than the expected 0.6%. This marks the largest increase in wholesale prices in 11 years, signaling that inflationary pressures are building. A large contributor to the increase was the cost of energy, which jumped 7.7%. Core PPI, which strips out volatile food and energy prices, also rose more than expected, increasing by 0.5%.

These price increases at the wholesale level could eventually translate into higher consumer prices, leading to inflation. This is a concern for the Federal Reserve, which has a target inflation rate of 2%. If inflation rises too high, it could lead to the central bank raising interest rates, which could slow economic growth.

Another problem for the Fed is the weekly jobless claims report. The number of people filing for unemployment benefits for the first time rose unexpectedly to 373,000 for the week ending July 3. While this is still down significantly from the peak of 6.1 million during the pandemic in April 2020, the unexpected rise is a setback for the job market recovery.

The Fed has said that it wants to see significant progress in the labor market before it makes any policy changes. However, the unexpected rise in jobless claims shows that the recovery is not as strong as hoped.

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Overall, the PPI report and jobless claims are creating challenges for the Federal Reserve. Rising wholesale prices and unexpected jobless claims can lead to inflation and a slower economic recovery. The central bank will need to carefully monitor these economic indicators as it makes policy decisions.

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30 Comments

  1. Doc With A Skull

    Always learn so much with your videos. Thank you!

  2. tony tony

    the dead cat bounce is designed to trick dumb money into the market. so the rich can sell their holdings for more money before the actual crash… am i wrong

  3. Emilio

    Can someone please respond. Is this guy a comedian? He seems to be very emotional during his data analysis.

  4. Mike

    It's frustrating that it's only been a couple years that the biz channels even bring up the participation rate, when in fact this has been a 20+ yr problem. 20 yrs ago nearly half of those aged 16-19 were employed either seasonal, part-time, after school, etc, while today it's barely 1 in 3 participate. When you expand it to 16-24 yrs of age, it was as high as 78% participating in the labor market in 2001, while today, it's down 10% points to about 67-68% participation. That falls in line with the stats of those still or back living with parents. Sadly, most age ranges have seen declines over the last 20+ yrs in labor market participation, with the exception of those in the 55-75+ who have actually increased their labor participation. That coincides with the decline, slashing & elimination of pensions plus taking care of not just themselves, but their "grown kids", as well as aging parents living well into their 80's & 90's. We're screwed…we truly are. Courtesy of the Bureau of Labor Statistics.

  5. ohplezz

    Bidenflation will continue and we are going to have a market crash.

  6. Rob Howard

    We can’t and don’t want 2% we need -10 to -15% we the people can’t afford to live. We are 20-30% increase since 2020. We won’t see wage increases in the double digit %s. The crash must happen or we are doomed anayways

  7. John Ski

    We should be buying meme stock. And not selling.

  8. ark

    No one is talking about how people who are disabled with long covid are simply not working. 1 in 5 in Colorado alone.

  9. William Miller

    I'm figuring 30% interest rates

  10. Jerry Bennett

    Too much welfare. Too much gov spending (IRA). These will continue to pervert the markets for another couple of years until at least Brandon is gone. January and Feb tend to be higher inflation because of price increases that companies establish for the year. April may show a lower inflation number for March so maybe were almost over the inflation peak?

  11. Trade Prosper

    Cash is King once again…

  12. HasswatBlockside

    I'm curious at how effective the actions by the Fed are against monopolies that are in control of nearly every major industry. The pricing power of these companies are simply too large for the Fed to fight against.

  13. Dan Newman

    B do you suggest any good penny stocks?

  14. Age of Reason

    Brian plays the stinkin' Fed like a harp from hell.

  15. fcsuper

    Too much money was "printed" during the 2020 crisis. It's going to take a long time to normalize the result.

  16. Israel Sandoval

    Inflation reviews came out today & this man was right on point! He doesn’t miss!

  17. M H

    This guy is awesome. Intensity, sincerity and wisdom. Thank you!

  18. Bdhdhd dNjdndh

    How did you know!!!!!!!!!!!!

  19. Mr. MC

    They're getting ready for algorithms robots and drones

  20. GasLandRights

    They do not need to do this at all, it is by design

  21. BlueEyes

    Best time to maximize your profits in stocks!

  22. Mprk Ayew

    Great video. You really do give much needed clarity t0 the fundamentals and pick up on many factors that others are missing

  23. daniel wise

    Brian, I recently watched your video on Exxon. Just saw an article on the the Guyana governments plan to reclaim 20% of the Exxon oil block. Reuters printed this on 02/17, a week ago. Your thoughts on the impact and as they are considering offering part of the prospecting to Brazilian Petrobras is there an upside there?

  24. ag

    I would love to see Brian make a video about his thoughts on the "The Hustle Culture" and expose it .

  25. kaleigh79

    Thanks for getting me interested in investing Brian. It's amazing you giving all this information out for free.

  26. Y S

    Fed is making decision base on outdated data, they eventually will cause something to break in the financial system, that’s even worst than recession. The whole idea about just tackle demand, and not increase the supply is the REAL problem.

  27. Varun kumar

    Will bitcoin come down below 12k

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