In this clip from The Macro Show on 6/10/22, Hedgeye Financial sector head Josh Steiner comments on the largest U.S. inflation increase since 1981. “When the Fed has gone on these rate hiking cycles in the past, 3 out of 4 times since the 1950s they have produced recessions as a result.”
Real income and purchasing power for consumers is deteriorating while housing, transportation, and food & beverage account for 87.4% of acceleration in inflation. “You still have these three categories that are driving the lion share of the upside in inflation, but there’s been big rotations. Housing has become more important, food & beverage has become more important, and transportation has become less important.”
