Cash is the least trash

The consumer price index, the flagship indicator of inflation, came in at 8.6% on Friday. Not only did this flout consensus of 8.3%, but it put down an emerging argument that inflation would soon begin a sequential decline. And thereby open the door for a return to the much worn, accommodative policy of the Federal Reserve. Not so fast.

 What was to blame? An outrageous run-up in energy prices driven by the Russia-Ukraine crisis, and beyond that, the persistent incapacitation of China's busiest port cities. It turns out inflation is sticky and difficult. 

What it does portend in the near term is more pain ahead for risk assets. Stocks, crypto, bonds. All must pay tribute to the most stubborn inflation and the prime directive of the Fed right now. To reign it in.