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🇺🇸❗️ Inflation Is Closely Following The 1970s Pattern: Cable FX Macro

  • We're heading into the Jackson Hole Symposium and desks have started to bring colour on what could the Fed Chair say regarding prices and the overall economy

  • While headline prices have rebounded in July, we could see further downside, but this might be limited. The graph below shows the current inflation cycle closely following the 1970s pattern

  • Back in the 70s, high prices lasted for years. If this pattern is to be followed, we could see U.S. CPI re-testing the 2022 highs, this means that the Fed would be right to signal higher rates for longer



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