Breitbart Business Digest: The Fed’s Inflation Mirage Meets the PMI Reality

The Inventory Inflation Lag Story Slouches Toward Oblivion

The Federal Reserve has been telling us for months that tariffs are inflationary. This isn’t a tentative hypothesis—it’s treated as revealed wisdom, etched into the Eccles Building’s granite. But the problem is the data keep failing to comply. Consumer prices have not surged in proportion to the tariff hikes. So, the Fed has invented a new theory: inflation is simply delayed . Firms, they argue, are still working through old inventories and will only raise prices once those shelves empty.

At first glance, that sounds plausible. But like so much of the Fed’s “make-it-up-as-you-go” storytelling, it falls apart under scrutiny. And the latest S&P Global Flash PMI report shows just how wrong the Fed’s inventory theory really is .