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Inside the Financial Storm: Expert Randy Woodward Unravels the Terrifying Truth of Credit Risk

Lead-Lag Live

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The Three Dynamics of Inflation

Inflation shocks are inherently deflationary, not disinflationary because of the overreaction. So you end up having conceivably a very aggressive deceleration decline in housing breakdown and inflation, but inflation lags. The optics of it would look terrible if the Fed sees disinflation, maybe tipping into deflation, but they lower rates while headline CPI is still elevated. That's three dynamic, right? Just from that perspective yeah, that'll be panic.

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