After acknowledging that “indicators of economic activity and employment have strengthened” because of “progress on vaccinations and strong policy support,” the Fed remains firmly committed to the belief that while “inflation has risen,” it is “largely reflecting transitory factors.”
During the 1970s the Fed uttered similar comforting words only to watch the CPI soar well above 10%, leading to draconian 17% interest rates to avoid the American economy shooting off into double-digit rates of inflation. Peter opines on whether he thinks dollar inflation is transitory and if not what that might mean for our markets.
