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Wednesday, November 11 2026
Wednesday, November 11 2026
MONETABRIEF – US inflation may have risen by 4.0 percent in the 12 months to October 2026, calculated from missing price data, as the Federal Reserve tries to boost growth with excess liquidity.
Inflation rose 0.4 percent in the month of October to 337.11 index points after rising 0.6 points the previous month the US Bureau of Labour Statistics said.
There was no data for last October due to unpaid workers last year.
Based on the average of the September 2025 CPI-U index number of 324.8 and 342.122, of 324.461, consumer prices rose 4.022 percent till October.
Based on the November number, which was lower than September, inflation would be 4.13 percent.
The Federal Reserve is running system based on excess liquidity or ample/abundant reserves, where banks can lend their excess liquidity and accommodate any shock to amplify it.
Ample or Abundant Reserves represent a serious deterioration of monetary knowledge and it came to Sri Lanka as a single policy rate and excess liquidity through International Monetary Fund technical assistance.
The new Fed Chair Kevin Warsh, who warned of the dangers of the excess money, has so far not stopped the deadly practice that has led to rejection of multiple governments and re-election of Trump twice.
Warsh however appointed five task forces. One of them was on balance sheet policy to examine "the costs, benefits, and institutional implications of the Federal Reserve's current balance sheet regime."
Another would "revisit how the Federal Reserve understands and responds to the drivers of inflation." (Colombo/Nov11/2026)
| 3 month bill | 9.26% | 1bp ▲ |
| 12-m bill | 9.95% | 2bp - |
| Gold (Ounce) | $4015 | - ▼ |
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