high prices rising from the dead
We've Entered A World Of Zombie Inflation. Wall Street Is Scared Witless.
The Lede
At the end of 2023 and the start of 2024, it appeared that the US was on a glide path to what was termed "economic nirvana": Growth would stay steady, if not spectacular, as inflation cooled off to a more manageable pace. This combination would not only let America continue its four-year expansion but also allow the Federal Reserve to ease up on its attempts to rein in the economy โ and maybe even cut interest rates. What a difference three months makes.
Key Details
- The inflationary-boom dynamic has pushed out expectations for rate cuts, causing some more alarmist analysts to suggest that the US is about to be gripped by another bout of high inflation.
- The unemployment rate is up modestly from 12 months ago, which suggests that price hikes aren't being driven by a sudden surge in consumer or household demand.
- On a deeper level, it appears that the acceleration in inflation is somewhat random, with much of the recent pickup being driven by industry-specific factors.