Inflation Kills Retail Sales

Game over for the Federal Reserve. Whether they know it r not, consumers are pulling back on spending in reaction to higher prices. The survey respnoses are now showing up in the data. Retail sales will nosedive if Powell comes out dovish. Stocks will nosedive if Powell comes out hawkish. Stocks will implode if Powell comes out dovish and the economy enters a stagflationary recession. Obvious choice is obvious. Academic retards like Yellen would probably make the wrong choice. Having some private sector experience, the odds are slighly higher that Powell makes the right one.

ZH: Big Disappointment In US (Nominal) Retail Sales For November

Finally, remember that retail sales are reported on a nominal basis and thus it is unclear how much of the rise is simply sue to inflation. The chart below - while overly simplistic given the vastly different weighting schemes - attempts to adjust retail sales monthly change for the shift in CPI. The picture is quite different, as 'adjusted for inflation', retail sales dropped in November...