The Prices Paid component of today’s ISM Manufacturing report came in at an inflated 65 versus last month’s elevated reading of 63.5.
We’ve been showing the sequential ramp in the chart below since deflation bottomed in July. This is not a deflation chart.
This is one of the many real-time price indicators that the Fed has been paid to be willfully blind to. Does this mean Bernanke will signal a rate hike on Wednesday? We doubt it. It’s sad, but it is what it is in our conflicted and politicized financial system.
Keith R. McCullough
Chief Executive Officer