'..inflationary forces have taken hold..''After all, inflationary forces have taken hold throughout the U.S. economy. It would now require a significant tightening of financial conditions to quash the unfolding inflationary cycle. Recent tempering of wage gains doesn’t negate the strongest compensation momentum in decades. Importantly, labor markets remain sufficiently tight to further embolden unions and workers alike. And especially with the U.S. economy having evolved over recent decades to be services dominant, wage growth today plays a pivotal inflationary role.'
- Doug Noland,
source, September 1, 2023
'"The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif..''The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing Purchasing Managers' Index rose to 54.5 last month against expectations of 52.5, while a gauge of prices paid by service-sector businesses for inputs increased.
..
"The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
While market participants have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future." '
- Reuters,
source, September 7, 2023
Context(Sticky inflation) - 'Euro-Zone Inflation Gauges Hold Above 5%' - US core inflation at 4.2%[Thomas Hoenig] has a Dire Warning About Where We’re Headed - '..Household Expense Data .. for 80 Years'(Global Stagflation) - 'Record wage growth and sticky inflation..' - 'UAW demands 46% pay hike .. to offset severe impact of inflation..'