The US Isn't Fighting A Temporary Inflation Spike — It's Entering A 2-Year Mini-Cycle

For much of the past year, investors have operated under a simple assumption. Inflation is gradually cooling, the Federal Reserve will eventually pivot to rate cuts, and the economy will settle back into a familiar low-interest-rate environment. Increasingly, the data is pointing in the opposite direction. A growing body of evidence suggests the U.S. is not dealing with a temporary inflation spike, but rather enteri…