On the point about the consumer, yesterday’s retail sales report was very strong but there was a huge seasonal adjustment that has the usual bears questioning the underlying strength.
Other comments from Barkin:
Expectation of a recession as needed to slow inflation has not played outFirms are reluctant to let people go, and some sectors are still short on labor supplyClearly on the ‘back end’ of inflationFirms are still trying to test their pricing power through that is not a permanent stateI’m watching the unemployment rate carefully but as open to idea that the policy is not as restrictive as thought
This article was written by Adam Button at www.forexlive.com.
