Wednesday, June 15, 2011

Rock and Hard Place

We don’t want to fall into the UK trap - inflation about double target, yet a sideways economy, today’s higher jobless claims and lower earnings testifying to that.

Today’s US May CPI print was not alarming perhaps - consumer prices are now 3.6% above their year ago level - but the trend will continue to rise, our view. Thus, we want to see real sector vigor before Bernanke feels obliged to apply a brake.


Robert Craven

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