bullish

Fed's Transient Inflation Thesis Facing Numerous Tests as Role of Excess Demand Downplayed

283 Views27 Nov 2021 06:09
SUMMARY
  • The Fed's transient inflation thesis hinges on temporary supply dislocations, but hitherto little attention has been paid to the issue of persistent excessive aggregate demand.
  • US industrial production and imports have fully and very quickly recovery from the recession relative to history, thereby casting doubts about a completely inadequate domestic recovery in aggregate supply.
  • Global supply chains struggle to cope with the US recovery due to shortages and strong demand, while pipeline PPI and housing suggest inflation could remain stubbornly high.
Get started on the Smartkarma Research Network with a complimentary Preview Pass to:
  • Unlock all research summaries
  • Follow top, independent analysts
  • Receive personalised alerts and emails
  • Access Briefings, Analytics, and Events

Upgrade anytime to our paid plans for full-length research, real-time analyst discussions, and more.

Join a thriving community of 45,000+ investors, including the top global asset managers managing over $13trn in assets.

or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
Logo
DeSaque Macro Research
Delivering Global Macro Investment Insights
Multi-AssetMacroeconomicsThematic (Sector/Industry)
x