Keep it Simple…2 + 2 = 4

The Immaculate Disinflation and the Silent Tax


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The late, great Franco Harris is probably best known for an iconic play in the AFC Championship game that became known The Immaculate Reception. It was an incredible, almost unbelievable play. At the beginning of the year markets were starting to price in an Immaculate Disinflation where inflation was simply going to magically decline rapidly to near 2% so the FED could pause rate hikes, then pivot, then cut them and markets would miraculously avoid any economic pain or reckoning. Inflation rarely works like the politicians who caused it would like. Taking a look at Minneapolis’ FED data confirms that any deflation on annual basis is rare and not near enough to offset the Silent Tax of inflation unleashed. Now, a few younger generations are learning why historically so many have cautioned against letting inflation “get out of the box.”
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Keep it Simple…2 + 2 = 4By UBS advisor podcasts