The markets are waiting for their 'Volcker moment' - they could be disappointed

Persistent inflation

Only the oldest among us can remember an inflationary environment like the one we are experiencing today.

For everyone else, extreme inflation is simply the subject of economic textbooks. Up until now, that is.   Today's market participants are perplexed, having known nothing but disinflation and low interest rates. Everyone is trying to determine when inflation will peak to better predict when to pivot towards bonds and the equities that will perform best in a low-rate environment. Rarely have employment figures, indicators of industrial activity, and oil supply and demand data been scrutinised so closely. Diviners of monetary policy messaging are burning the candle at both ends to trans...