QE being QE.
3 month yield has not heard about coming inflation. pic.twitter.com/4bm6UEk6is
— Market Musings (@AndysCycles) May 23, 2021
Central banks balance sheet vs GDP.
"Everything is fine, it is not as large as Japan's BOJ" is a false narrative.
Considering three decades of stagnation and massive debt as "fine" is more than dangerous. pic.twitter.com/vTIVSR6cY5
— Daniel Lacalle (@dlacalle_IA) May 24, 2021
The demand side.
In April 2020, household savings peaked at $6.4 trillion.
Subsequently, $3.6 trillion of consumer spending was unleashed over the next twelve months.
That is equivalent to 7.5 times the historical average annual spending adjusted for inflation. pic.twitter.com/5bQfntxEdT
— Otavio (Tavi) Costa (@TaviCosta) May 23, 2021
— Alastair Williamson (@StockBoardAsset) May 23, 2021
They bought the Lumber dip.
Lumber over 20% off the lows.
The Fed is just killing it on the stable prices mandate. pic.twitter.com/IB2eOtzFm0
— Sven Henrich (@NorthmanTrader) May 24, 2021
Signs that inflation is picking up momentum are adding a new dimension to the post-lockdown market rally, forcing investors to make difficult decisions about how to protect their portfolios.
The Biden administration recently gave a bit of simple advice to businesses that are unable to find workers: Offer them more money. This recommendation, included in a White House memo about the state of the economy, gets at a fundamental tension in an economy that is returning to full health after the coronavirus pandemic.
Employers are giving workers raises, which could ultimately nip companies’ bottom lines.