Chart of the Week | June 17, 2022
This Week’s Domestic Economic Results
- The Federal Reserve’s (Fed) 75 basis point rate hike was the largest since 1994 in an attempt to tame 40-year high inflation (8.6%), risking higher unemployment and an economic slowdown. (Read further analysis here.)
- This week’s economic data intensified the risks of a recession as most of the economic data missed consensus estimates, illustrating economic pain amid the current macro backdrop.
- Stagflation pressure remains our base case as the supply and demand economics of supply side inflation may result in higher unemployment as the Fed can only curb demand side of inflation.