U.S. Inflation Surge a Sign Recession Is Near: SocGen’s Edwards
Source: BFW (Bloomberg First Word)
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Albert Edwards (Societe Generale SA)
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UUID: 7947283
(Bloomberg) -- The Fed’s dovish tone comes even amid a rise in core U.S. CPI and a surge in the central bank’s own preferred measure of inflation, the core PCE deflator, Societe Generale analyst Albert Edwards writes in client note.
Alert: HALISTER1- While some may say the surge is a sign the Fed is way behind the tightening curve, Edwards says it confirms the end of the third longest U.S. economic cycle
- A downturn in corporate margins explains the pick-up in core inflation
- In the run up to past two U.S. recessions, unit labour costs rose above output prices as is the case again now
Source: BFW (Bloomberg First Word)
People
Albert Edwards (Societe Generale SA)
To de-activate this alert, click here
UUID: 7947283