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This is absolute bs. Astonished that Schwab do not understand basic maths. Or are they just lying to get IR’s down.

Basically .....

1. Inflation is based on the last 12 months prints.

2 In May 2023, if we have had 6 monthly prints of zero then .....

3. Dec 2022 to May 2023 would be zero.

4. The remaining 6 months would be Dec 2022 back to July 2022.

5. Jul 2022, August 2022, and Sept 2022 inflation were all above zero.

6. So mathematically May 2023 inflation at zero is IMPOSSIBLE unless we have actual printed DEFLATION of about 3%-4%. That is consistently -0.5% per month from now fir 6 months.


(Almost) Mathematically impossible inflation to be 0% in May 2023.


2% inflation by May 2023 only possible if we have  200 bps IR minimum ..... NOW.


Gunnerguy


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