What kind of world are we living in when the July inflation rate is 8.5 percent and the stock market goes crazy. 8.5 is still way to high.

the market isn't necessarily rational in the short term, though in the long term, it tends to be.  It may be overreacting, but I expect that reports will attribute the rise to relief that the Fed may not have to raise interest rates as high as was feared, thus making a recession less severe and less likely.

The market isn't saying that the current inflation rate is acceptable, its saying that it may require less destructive intervention to lower it to an acceptable level. 

Gene

You cannot look at economics one piece at a time. Its all interlinked.
I guess you could call inflation a readjustment in the standard of living, ie the poor are put back a few pegs and have less money, so that means less spending if it goes crazy. Trying to hold things in stasis is hard to do when you only have control of your own countries decisions, nobody elses.
When my family moved here Ice on the inside of the windows and icicles on the ceiling were normal on winter nights. Now we are mostly warm due to the fact we can afford to be using insulation and fuel. Back in the old days it was coal fires and paraffin heaters, both of which made the house damp.

So although we do take some steps back every so often, its not as far back as we were in 1957 when I came here with my parents.
Brian

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