Alternative measures of inflation from the Cleveland and Atlanta Fed point to underlying pressures that threaten the “transitory” nature of this inflationary episode.
Key Takeaways:
- U.S. companies have sold a record amount of junk-rated debt this year, which collateralized loan obligations (CLOs) have been scooping up at a record pace. Remind anyone of 2007 and 2008?
- Bloomberg Intelligence says gold will “revisit its peak soon,” but has several large barriers to overcome beforehand (such as tightening of monetary policy).
- Consumer prices in Europe are rising at the fastest pace in 13 years, catching up to the United States’ record inflation numbers.