Julian here to highlight important notes from Compound Capital Advisors founder Charlie Bilello. He argues ‘transitory’ inflation matters in both falling and rising inflation environments, and notes Fed contradictions on this topic:
– The Fed acts swift/strong on transitory downward inflation (0% rates, QE 1Q20)
– The Fed is now ignoring transitory upward inflation (still 0% rates, QE-infinity, big spikes in CPI, gas, lumber, copper)
At their next meeting, the Federal Reserve will, with a single word, dismiss all concerns related to rising prices: “transitory.”
What do they mean?
Check It Out: