A self-reinforcing inflation cycle is building

We are now facing the greatest potential for a sustained rise in inflation in decades.

Fed will be worried about the sensitivity of the economy to rising rates after it was forced to quickly reverse course after the 2018 tightening. 

There is a reasonable probability that the economy may actually be less sensitive to a rise in interest rates than recent experience would suggest. 

FT 3 February 2022
The writer Bob Prince is co-chief investment officer for Bridgewater Associates

https://www.blogger.com/blog/post/edit/10687336/8511979063255446787

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