Now Even Larry Kudlow Acknowledges Inflation
Similarly, as a sign that the inflation outlook is really bad, now even arch-dove Larry Kudlow feel compelled to admit there is strong inflationary pressures in the U.S. economy. Kudlow has been a master in denying it, constantly changing standards and definitions as to what predicts and measure inflation. As every indicator around points to rising inflationary pressures, he no longer has any choice but to acknowledge that there really is strong inflationary pressures. Now, I suspect Kudlow won't stay hawkish for long. As soon as just one of his indicators turns dovish, he will too, even if all the remaining indicators support the hawkish position. But the fact that even Kudlow feels compelled to acknowledge inflation clearly illustrates that it is a big problem.