This from Rabo is an interesting one:
- “While a lot of what we are seeing now is indeed transitory, structural changes are taking place in the global economy and domestic fiscal policy that could lead to more sustained high inflation”
Strucural changes have been an argument for lower inflation, not higher (think tech change driving product improvements and supply).
This via BMO argues the ‘transitory’ argument from the Fed is looking outdated:
- “You get the message, in large font: the peppy rollout of stimulus and vaccines is causing U.S. demand to rebound much faster than supply. This is creating many unpleasant side-effects, like inflation…just a few quarters after the economy’s collapse instead of the usual several years for imbalances to emerge after a recession. The writing is on the wall: The Fed’s temporary-inflation mantra is sounding more dated by the week.”
Analyst info via Reuters.