- It's hard to know how much of a signal to take from inflation last year, this quarter, or the last two weeks
- I've never been more confident in the first quarter of this year regarding inflation, and we'll see where we go
- On the commodities side, I've heard that pricing power is diminishing
- The inflation reading this month was very encouraging
- The labor market is also heading in the right direction
- The employment rate has dropped a lot
- I'm watching closely if we see an acceleration
- The underlying dynamics of spending are a strong jobs market and a stock market at record levels
- Consumer spending remains strong
- It is not difficult to see scenarios in which the labor market weakens
The five-year breakeven rate in the US is 2.16%, and the bond market has already decided that inflation is over.
This article was written by Adam Paton at www.forexlive.com.
