Record Highs With A Chance Of Inflation, But Fed Meeting In The Forecast

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So now we know what it takes to set a new record high: A big jump in consumer prices. That’s just being a bit facetious. A little inflation is often good, because it can show strong trends in the economy.

From what analysts have been saying, there’s plenty of pent-up demand for things like travel, outdoor activities, casinos, cruises, and hotels. If prices have to go up as a result, maybe that’s not so bad. The real sort of message from this week is though the numbers are pointing to more inflationary pressures, the market continues to buy in or accept the Fed explanation that this is all transitory. That’s the narrative now, but we’ve seen it change quickly before and there’s no reason to think it can’t change quickly again. More on inflation and the possible Fed and bond market reaction below. First, let’s take a look at what’s straight ahead today. Major indices turned green again in more...