Inflation ending the year above 7%

 Before the April 2021 report, Magnusson had been firmly in the lower-for-longer inflation camp. But he suddenly shifted his thinking and concluded the U.S. was about to break away from three decades of low inflation, a view not publicly shared by many in financial markets or professional forecasters at the time.

The past year has proven that Magnusson — currently chief investment officer of the now-relocated Wayzata, Minnesota-based Garda, which oversees more than $8 billion for institutional investors

Derivatives-like instruments related to Treasury inflation-protected securities, were trading at levels this week that imply Friday’s annual CPI rate for May will come in at 8.5% 

What makes Magnusson’s view about the likelihood of inflation ending the year above 7% especially pertinent is that at least one top U.S. policy maker, Lael Brainard, has said she’s looking for a string of decelerating readings to gain greater confidence that the Fed can eventually hit its 2% target

MarketWatch 8 June 2022

https://www.marketwatch.com/story/this-hedge-fund-manager-called-inflation-early-he-now-says-consumer-prices-will-finish-2022-at-a-level-that-screams-failure-by-the-fed-11654699936


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