Bloomberg/Daniel Moss/6-1-2022
“Sure, elected leaders want inflation to come down, but they also love a strong labor market and hate recessions. Is Biden prepared to pay the ultimate price for telling Powell to have at it? I am skeptical.”
USAGOLD note: If the Democrats believe inflation is costing them votes, wait until unemployment kicks in . Or worse, we get the two together. As it is, the Misery Index – the combination of the two – is starting to turn higher. Albeit the trend is driven primarily by inflation, but if the unemployment kicks in on top of it, we could see some 1970s-style verticality.
Sources: St. Louis Federal Reserve [FRED], Bureau of Labor Statistics
