Analysis of Equities, Bonds, Commodity Supercycle, and Fed Challenges

This chapter delves into the persistent correlation between equities and bonds, the influence of fixed income volatilities on equities, and the potential of a commodities supercycle to spur inflation and pose challenges for the Federal Reserve. It also explores how ongoing supply constraints in commodities, labor, and housing are driving sustained higher inflation rates, underscoring the importance of flexibility and strategic decision-making by the Fed.