Amid the mounting speculation of a soft landing, and even chatter of a “no landing” (see here and here), one strategist is laughing at the market’s renewed sense of optimism and hope, which he counters simply by observing the latest economic and Fed developments and says that “a typical end-cycle environment is coming into place — mixed economic signals with a downward bias combining with a Fed laser-focused on corralling inflation by reducing labor demand.”
Yes, for TS Lombard economist Steven Blitz, there is no thesis drift (or rather elevation) and his big picture assessment refuses to budge: “recession will result.” Here’s why: “Forget the Fed stopping to wait and watch and hope that inflation bends towards 2% without a recession. That horse has left the barn. A key question is where the funds rate is when the Fed realizes recession is already underway.“
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