TRND - Inflation In Focus; Productivity Strong; Patience Needed On Jobs - Market Strategy Weekly - June 11 2021

• Strategas Chief Economist Don Rissmiller discusses the macro environment, hitting on recent inflation data, the weaker-than-expected jobs recovery, and where monetary policy goes from here.
• So far, the Fed has consistently stated they’re likely to view this data as transitory and not fight it. And if we dig into some of the components, it’s things that could be characterized as transitory: a big surge in used car prices, a spike in airfares. We probably need to see some shift in the composition before we get more worried.
• Wages and rents are definitely some of the stickier components of inflation. Though with housing, it’s important to remember that it’s not house prices but rent and owner’s equivalent rent that matter to CPI. And those are moving sideways; there hasn’t been a big surge yet.

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