Surveillance: Fed's Pain Threshold with Misra
Bloomberg Surveillance
00:00
The Divergence of Inflation Between Manufacturing and Services
Alan Ruskin says this is a sign that if the Fed pauses, they may have to hike again later on as some of the distortions from the pandemic era buildup of inventory starts to work itself through. Do you agree that there actually is a risk here signaled by this divergence of inflation that remains much higher than people expect? I would say manufacturing is a most cyclical industry. Manufacturing typically slows down before services. Services have been strong because the consumers have a saving buffer and monetary policy works with the lad.
Play episode from 02:45
Transcript
