Price Pressures Abound
Although one imagines next month's survey will be more "interesting" given that it will presumably contain some anecdotes about the deep-freeze and associated effects on businesses, the Dallas Fed was officially a beat for February.
The headline gauge printed 17.2 versus expectations for 5.0. The range from the handful of economists who ventured a guess was -20 to 10.
Regional Fed surveys don't make for the most exciting reading, and this is no exception. However, the market is looking for sig
” If that’s accurate, it’s not great for profitability.”
Profitability? Who cares? Are you auditioning to be a writer for The Onion?
Lean into it. Do the work, decide what investments you expect to be lifted by inflation, and own those.
If the cause is supply disruptions, then the question is are these supply disruptions expected to be enduring. If not you have transitory price pressure, not ongoing inflation.
It will be to many dollars chasing a limited number of goods and services that wil lite the fuse for inflation. The dollars will come from the proposed 1.9 trillion stimulus package. Get ready. The Fed is behind the curve.