“While such readings would be below June’s 9.1% reading and support the theory that inflation may have peaked at an almost 41-year high, the expectations of inflation-derivatives traders still adds up to what could be a lot of bad news for the broader market. The reason boils down to the length of time that high U.S. inflation persists, which would upend the hopes of investors, traders and policymakersfor a relatively quicker and meaningful slowdown in price gains.”
USAGOLD note: The progression should be a matter of concern for all investors. We have gone from “no problem” to “transitory” to “controllable” to “persistent” to “extremely daunting” (per former New YorkFed president William Dudley) – all in the space of a single year. As we have always said, inflation is not an event but a process.