Recapping the day's news and newsmakers through the lens of CNBC.
It hasn't yet earned a place in economics texts, but "Francis Bacon inflation" could offer another window into the economy's inner workings. On Tuesday night the artist's work "Three Studies of Lucian Freud" sold for an astounding $142.4 million at Christie's. It was the most ever paid for an auctioned work. Since the previous high for a Bacon piece was $86 million, paid in 2008, his work hints at an art inflation rate that far surpasses gains in the CPI or price of gold.
Some experts say Bacon inflation is just one of many examples of soaring asset prices, including things like stocks and New York City apartments, due to Fed's easy-money policies. The question: Is the focus on standard gauges like the CPI missing a growing inflationary pressure evident in assets that those traditional indexes don't include? Further, is Fed policy just promoting asset inflation without fixing the economy's most important problems, like unemployment?
"Those that are paying $142 million for a painting are not going to be able to sell it for that price when the Fed is out of the game. ... And selling a painting for $142 million doesn't give the person looking for a job a job."—Peter Boockvar, chief market analyst at Lindsey Group