Taps Coogan – July 2nd, 2022

Long gone are the days when CNBC’s Rick Santelli was given wide birth to interview guests and share his views on markets and the economy, but in a rare exception, he was allowed to speak for a few uninterrupted minutes a few days ago to share his outlook on the Treasury market, warning that it had become unmoored by monetary policy and that inflation, while likely peaking on a year-over-year basis, would remain sticky.

Some excerpts from Rick Santelli:

“In a way (Chairman Powell) got under my skin, especially when he was asked what he thought about some of the fiscal policies and legislation past, present, and future and he basically said ‘Hey, I stick to my own knitting here,’ which really goes against the grain of what he said from about March 2020 to the end or mid 2021 when he was in essence begging for more fiscal additives inside the economy… The market is unmoored for a very good reason because policy was unmoored and the Fed was the enabler. You can’t spend too much money and you can’t spend too much money unless the Fed condones some of the big spending policies of the administration…”

“I think (quantitative tightening) will (destabilize the bond market)… At the end of the day… I see inflation as peaked. Commodity inflation, in my opinion, already peaked. The issue isn’t whether it peaked… the issue is, the rate of change may go to zero… but the prices in the stickiest parts of the inflation areas are going to remain very sticky…”

There is more to the interview, so enjoy it above.