Editor's Note: Below is an excerpt from today's Early Look written by Director of Research Daryl Jones. Click here to learn more about the Early Look.
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In the Chart of the Day, we highlight a key slide from Q2 Macro Themes deck that looks at Oil v. 10Y break-evens. As the chart quite obviously shows, there is a tight relationship between oil and inflation expectations. The implication is that #Quad3 Energy Inflation will continue to drag up inflation expectations. This path will only accelerate with a weak dollar in the second half of 2019. Simply: more cow bell = weak dollar = rising inflation. |
