In order for the Fed to reverse course, the upward trend of inflation must be broken. There are economic signals showing that the rise in inflation will be broken in September. I even think that towards the end of this year or in the first quarter of 2023, inflation will decrease.
The whipsaw from inflation to deflation can be powerful especially since this isnt truly inflation but price increases. There is no money causing this but supply side shocks.
Thus the solutions is greater supply or less demand. The Fed is focusing upon the latter, since it cant increase the supply of anything.
We are already seeing many commodities starting to fall. Will the trend continue? We will see.
I am still looking for the risk on trade to go into effect.
While it could happen without it, I dont see it taking place unless the Fed reverses course, which it will at some point.
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In order for the Fed to reverse course, the upward trend of inflation must be broken. There are economic signals showing that the rise in inflation will be broken in September. I even think that towards the end of this year or in the first quarter of 2023, inflation will decrease.
Posted Using LeoFinance Beta
The whipsaw from inflation to deflation can be powerful especially since this isnt truly inflation but price increases. There is no money causing this but supply side shocks.
Thus the solutions is greater supply or less demand. The Fed is focusing upon the latter, since it cant increase the supply of anything.
We are already seeing many commodities starting to fall. Will the trend continue? We will see.
Posted Using LeoFinance Beta
You are right. The next 2 months are very important, we will wait and see.
Posted Using LeoFinance Beta