ProHFAnalyst

Seven Reasons Inflation Won't Vanish

I agree with many of your stats, however, the Fed's statement that inflation will moderate is predicated on one simple and unavoidable fact: when there is a recession, demand plummets, and hence there is an oversupply of all goods for a little while until production also adjusts downwards. So in the end, the argument boils down to this: if there is a big recession, then inlfation will moderate, if not, then inflation will keep chugging along.