In my opinion if we saw a sudden departure from recent inflationary trends, that would certainly catch the attention of the Federal Reserve. I mentioned earlier that markets seemingly do not trust the Federal Reserve, and you could characterize that as fear. Let’s talk about inflation at the tangible goods level, the services level, and the shelter level. The reason is simply that the forces impacting inflation at the services level are unique, and different from forces that impact inflation in other areas. You could argue that while the Fed is attempting to control inflation at a headline level, it is making inflation at the shelter level worse.

Source: The Express Tribune May 02, 2023 06:53 UTC