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.

How does the inflation data from last month influence the perception of a soft landing?

What factors contribute to the potential for a hard landing in the economy?

Discuss the implications of the Fed's actions on the economy as mentioned in the text.

What is the significance of the wage price spiral in the context of inflation expectations?

In what ways does the labor market impact the Federal Reserve's monetary policy decisions?