June CPI: Rebuke To The Monetary Central Planners And Rate Cutters, Too

The monthly BLS inflation report is usually not worth the paper it is printed on, but today’s June release may well be an exception to the norm. It literally proves that the Fed’s modus operandi based on fiddling with interest rates in order to fine-tune the $30 trillion US economy toward its “goals” for growth, jobs, inflation and all the lesser economic variables amounts to a Mission Impossible folly.

The graph below shows the Y/Y change in the headline CPI number in solid red for the period between June 2018 and June 2025. During that seven year period the US economy was literally body-slammed by Washington policy interventions. These shocks included—