Powell: This Transitory Inflation Sure Is Sticky

Fed Chair Jerome Powell just said his confidence that inflation will keep cooling is not as high as it was at the start of the year.

And that the central bank will need to be patient before lowering rates.

But the truth is… this sticky inflation is absolutely expected considering the continued massive fiscal stimulus.

During a panel in Amsterdam, Powell said…

“We did not expect this to be a smooth road, but these [inflation readings] were higher than I think anybody expected. What that has told us is that we’ll need to be patient and let restrictive policy do its work.”

His comments came just hours after a new reading on wholesale prices for April came in almost double the expectations.

Core PPI also rose in April by 0.5% – more than doubling expectations.

Powell said that the price increases would be temporary and go back down.

But that was more than three years ago.

And now costs are at record levels – and still heading higher.

Of course, Powell doesn’t blame government spending nor the money printers for the massive inflation that we got.

Congress recently passed a fresh $1.2 trillion spending bill.

So it will be no surprise if inflation continues to be a major problem.

That’s probably why the IMF recently predicted we could be looking at years of inflation.

With inflation sticking around longer and economic uncertainty on the rise…

Finding profitable investment opportunities becomes crucial.

With the AI revolution in full swing…

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It’s no secret America’s big tech stocks are battling for dominance in AI.

But what most folks don’t know is that tech giants are in a race to build new datacenters – also known as AI factories.

Nvidia’s CEO says $2 trillion will be spent building these new AI factories.

Apple, Amazon, Microsoft and Meta Platforms are already investing billions on these next generation datacenters.

Stocks like Nvidia have already jumped 210% in the last year.

However, a secret group of hidden AI stocks are completely overlooked.

My research suggests that 5 secret stocks could jump 313% – 1,355% in the coming years.

Ian Wyatt