CPI Report 'Kills the Soft Landing': Nomura's McElligott

The transcript discusses the economic outlook in light of recent inflation data, highlighting the shift from a potential soft landing to a more likely hard landing scenario due to persistent inflation and a strong labor market. The Fed's actions, including rate hikes, are seen as necessary to control inflation but increase the risk of economic downturn. Market reactions reflect this shift, with pricing indicating expectations of a hard landing.

What economic outcome is suggested by the recent inflation data and Fed's response?

• A soft landing

• A hard landing

• A rapid economic growth

• No change in economic conditions

How has the market reacted to the Fed's actions regarding inflation?

• By expecting a soft landing

• By ignoring the Fed's actions

• By pricing in a hard landing

• By anticipating a decrease in interest rates

What is a critical factor contributing to the persistence of inflation?

• Stable wage growth

• Reduction in core goods prices

• Increase in rent prices

• Decrease in service costs

What scenario is the Fed trying to avoid by tightening financial conditions?

• A decrease in inflation expectations

• A stable labor market

• A reduction in real yields

• A wage-price spiral

What is the Fed's response to the current labor market conditions?

• Loosening financial conditions

• Maintaining current interest rates

• Tightening financial conditions

• Reducing real yields