#CkStrong
When your fave local coffee house has eliminated the 15 percent gratuity option on Square. That is today relative to a fortnight ago, folks.
Racking my brain to find the Gruatity supply chain disruption here. Anyone?
Classic case of inflationary expectations becoming deeply imbedded in the economy or is it possibly a relative price shift as political power moves to favor labor vs. Das Kapital? We think a bit of both.
Mr. Powell has a lot of wood to chop, if he can chop wood. But can and will he?
Serious doubts about the number and strength of his and the FOMC’s vertebrate when the going gets tough. And it will get tough.
We suspect today’s stock market mega ramp is not exactly what the Fed wanted. “Reducing demand to dampen inflation?” Total the oppo today, folks. Wealth effect.
The Fed needs asset prices lower in the near term.
A Slave To Goods & Serivces Inflation vs. Asset Inflation
That is the economic trade-off now, folks.
You can’t serve two masters: reducing inflation while serving asset inflation.
No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. – Gospel of Luke
