JP Morgan's White: Core Inflation To Stay Sticky

The video discusses the ongoing fight against inflation, focusing on the labor market, core inflation, and goods prices. It highlights the bond market's volatility and the role of Treasury protected instruments in providing inflation protection. The economic cycle's next phase is expected to show limited growth, with medium-term yields likely to decrease. The video also contrasts headline and core inflation, emphasizing the Fed's focus on core services excluding rents.

What was the unexpected factor contributing to the rise in core inflation?

• Increase in energy costs

• Rise in food prices

• Increase in housing prices

• Surge in used car prices

What is the expected trend for core inflation in the coming months?

• Increase to 6%

• Remain at 5%

• Decrease to around 3%

• Drop to 1%

How might the bond market react to a shift in the inflation narrative?

• A quick reversal in trends

• Yields will remain stable

• Yields will increase steadily

• No significant change

Why are TIPS considered a smart investment in the current environment?

• They are risk-free

• They are a cheap way to protect against inflation

• They offer high returns

• They are unaffected by market volatility

What is the Fed's focus in its fight against inflation?

• Real estate market

• Food prices

• Energy prices

• Core services excluding rents