🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

What if Disinflation Turns Out to Be Transitory?

Published 18/09/2023, 04:36 pm

Inflation has come down a great deal from its peak, but what if — in a total plot twist from the Fed's plan — disinflation is what turns out to be transitory?

Jesse Felder Post CPI Tweets

Certainly, there are important dynamics in commodities markets today that threaten to make the Fed’s job much harder.Jesse Felder Saudi Oil Tweets

In addition, a rising dependency ratio represents a structural tailwind to the inflationary impulse.

Jesse Felder Demographis vs Inflation Tweets

Meanwhile, the inflation already incurred by the economy may soon threaten the integrity of the “soft landing” narrative.Jesse Felder Tweet - Unemployment

Of course, the message from the bond market has not wavered. And, unlike economists, it has a perfect track record.Jesse Felder Tweets on US Bond Market

Perhaps it’s time for the “stagflation” narrative to make a comeback.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.