- Washington appears to be back at the center of the market’s attention as Congress moves to pass yet another fiscal package.
- For the moment, inflation is in check (prices as measured by the CPI rose about 1.5% year over year in January, a touch lower than the pre-COVID rate), but inflation expectations are rapidly rising.
- There could be heightened concern of an "inflation scare," particularly as fiscal spending continues and economic reopening approaches.
For further details see:
More Stimulus Imminent, Reopening Approaching, Inflation In Focus - Market Strategy Weekly - February 12, 2021