Fed’s Goolsbee: Retailers stockpiled ahead of the dockworker strike

• Dockworkers strike was predicted, retailers have been stockpiling
• Retailers have about two weeks of extra inventory, there will be an effect afterwards
• Dockworkers strike could have supply-chain effects, that could mean some increase in prices
• We’ve largely gotten inflation down
• The new inflation numbers are at the Fed’s target, the labor market is at full employment
• 25 vs 50 bps not as important as getting rates down over the next 12 months
• There has been a ‘partizanization’ of consumer sentiment readings, making them less useful

He’s giving himself a round of applause here. I also wonder if stockpiling didn’t skew some of the data before the strike.

As for the partizanization, this chart of UMich confidence speaks for itself:

This article was written by Adam Button at www.forexlive.com.