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US Business Surveys Show No Slowdown, Inflation Heating Up Again
So much for the "slowdown" narrative.
You might've assumed the second-largest bank failure in US history and the turmoil associated with two weeks of fairly acute financial sector angst would manifest in more subdued economic activity. And maybe they have. But not according to flash PMIs released by S&P Global on Friday.
Both the services and manufacturing gauges beat estimates, suggesting activity turned up in early April. At 53.7, the services gauge was the highest in a year, and topped
The Fed has staked its credibility on bringing inflation back to 2%. I would hate to see what happens if that credibility evaporates, inflation stalls at 4-5%, and inflation expectations rise to 4-5%. Those inflation levels would be similar mid-80s-early 90s, a period when the 10 yr Treasury yield was bouncing around 8%.
Price controls seems like a can of worms but are there any mechanisms the government can exert to reel in greedflation? Seems like political sweet spot for dems.