Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look.
One of the few people at the US Federal Reserve that actually matters (NY Fed Head Bill Dudley) changed his story from dovish to hawkish on inflation yesterday saying that “temporary headwinds to inflation are fading.”
The absurdity will happen if Dudley, Yellen, etc. start to raise rates right before US inflation starts to rollover again (against much tougher compares) in NOV 2017 through MAR 2018 (see Chart of the Day above on our forward-looking inflation basket). Doubting their longer-term forecasting ability should never be undone.
