Druckenmiller says core PCE was 1.5% when Greenspan raised rates from 4.75%, now it's 1.7% at 1.5% Fed funds.
“I look back and the core PCE was one and a half in '98 and '99 when Greenspan started raising rates again from 475 is currently one seven and he's got them at 1.5.”
Druckenmiller notes 12 of 14 inflation measures are above 2%, questions Fed focus on 1.7% core PCE.
“Well, first of all, there's 14 recognized measures of inflation. 12 of them are above 2%. Their preferred measure, the core PCE, is at 1.7%.”
Druckenmiller notes $18 trillion in negative-yielding debt existed a year ago despite imminent 8% inflation.
“Even as late as, I think a year ago, was 18,000,000,000,000 of debt that was still negative yielding when the world was about to experience 8% inflation. It's pretty extraordinary.”