It’s all about high inflation at the moment. The Federal Reserve is certainly focused on inflation risk and is set to raise interest rates again in tomorrow’s policy announcement (Wed., July 27). The view that “inflation is transitory” is all but dead as a viable narrative on Wall Street and beyond and so the future looks obvious. Considering the potential for a return of disinflation/deflation (D/D) risk, in other words, appears clueless in the extreme. For that reason alone, let’s consider its likelihood at some point in the near future, if only as an exercise in contrarian thinking.
Daily Archives: July 26, 2022
Macro Briefing: 26 July 2022
* Tensions rise between US and China over planned Taiwan trip by Pelosi
* Russia set to further cut gas deliveries to Germany
* Is the US recession? Deciding yea or nay is tricky at the moment
* Economist Nouriel Roubini predicts deep recession due partly to high debt loads
* Supply of negative-yielding debt has fallen sharply since late-2020
* US growth running below historical average for second month in June:
