MarketsInsider/Phil Rosen/7-8-2022
“What seems to be forgotten here is that inflation is a sticky, slow moving variable. Spikes can reverse quickly, but underlying inflation tends to move in a gradual lagged fashion with respect to the economy. It is going to take time to cool off the labor market and even more time to lower labor cost-driven inflation.” – Ethan Harris, Bank of America
USGOLD note: Bottom line, Bank of America believes it will be “extremely hard” for the Fed to bring the inflation rate back to its 2% target within two years.
