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Unusual Whales Pod #9: CPI, Macro, the Federal Reserve, and Inflation

Unusual Whales

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The Fed's Response to the Two Year Note Rate

The two year note rate has been a good indicator of bond markets tolerance for or lack of tolerance for commodity inflation. I still think that they smell the fact that inflation is not going back in the bottle and that we're going to see eight points something or, you know, around there for the foreseeable future. The Fed definitely perceives that their tool acts primarily by moderating our good demand. It's kind of more interested in deciding where the next 20% in the S&P is.

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