Blackrock has come out with his latest note on macro perspectives and makes a compelling argument: inflation is largely being driven by supply shocks, not fiscal policy, and raising interest rates is not the solution. This was largely caused by manufacturing shortages and a shift in consumer spending towards goods rather than services. We’ve heard it all before, and it’s compelling. I think inflation will go away along with the virus and we’ll be right back to the post-financial crisis economy. That’s the best-case scenario. Because if inflation continues and the Fed is forced to raise Fed funds to […]
