Now that inflation is up from 1.4% to 6.2%, and even Powell admits it is no longer “transitory”, BofA’s CIO Michael Hartnett writes in his latest Flow Show note that inflation is rapidly emerging as an economic and political problem, as he points to a chart showing Biden’s approval rating sliding from 56% to 42% YTD…
… or as the BofA strategist summarizes, in the context of “inflation, politics (midterms Nov22), and credibility, the Fed set to be very hawkish next 6 months” something the market is clearly grasping today with tech names tumbling.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
