Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
The Two Speed Economy That Has the Fed Confused
Consumer sentiment is at a record low, yet small caps are rallying and GDP is growing. Lucas and Luna unpack the divergence between how Americans feel and how markets are behaving. With the S&P 500 at 7,511 and the Russell 2000 surging 3.6% in a week, they drill into the data: sentiment indexes versus hard economic numbers, the role of inflation expectations, and what it means for Fed policy. Lucas points to the 10-year breakeven inflation rate of 2.40% and the core PCE at 129.3, arguing markets are pricing sticky inflation while consumers feel the pinch of higher prices at the pump and…
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