January Producer Prices Double Expectations

The PPI increased 1.0 percent in January, double the consensus forecast. A 1.0 percent monthly rate annualizes to 12.7 percent. Since oil rose in February, the PPI should continue climbing in February. The ZB contract initially bounced, but is now rolling over. Once this goes, the bears can start rampaging. The Federal Reserve becomes more trapped by the day. If they hike too little, inflation will explode immediately, crude goes through $100 per barrel and the stock market implodes. Hike too much and there's a sharp, immediate correction. The indexes are still holding their gains, but they're rolling over like ZB...