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Gordon Johnson: CPI has exceeded Fed 2% target for 61 consecutive months

Gordon Johnson: CPI has exceeded Fed 2% target for 61 consecutive months
CPI exceeds Fed 2% target 61 months

Gordon Johnson, CEO / Analyst at GLJ Research, highlights that the headline Consumer Price Index (CPI) has surpassed the U.S. Federal Reserve's 2% inflation target for 61 consecutive months.

Johnson notes that even if the upcoming May CPI reading is lower than the Street's estimated 4.2%, it would still represent an increase from April's 2.9% and remain significantly above the central bank's mandate. He questions whether price stability continues to be prioritized in current market sentiment.

Johnson has previously cautioned that a $300 billion U.S. Treasury T-bill issuance through July may drain liquidity from markets and pressure bitcoin, according to a recent article. He also analyzed how changes in Federal Reserve liquidity are reducing banks’ ability to invest in bitcoin in a separate report. These observations come as market participants monitor inflation and central bank policy moves.

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