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Passthrough effects shift as shocks persist, Skanda Amarnath notes
Passthrough effects are not constant and can become more pronounced the longer a shock persists, according to Skanda Amarnath.
He suggests that while the prudent response is to look through these effects, in practice it proves to be a significant challenge.
Amarnath's perspective on the complexity of navigating persistent economic shocks aligns with his previous examination of the U.S. administration's recent oil futures strategy and its broader implications for policy responses. His nuanced approach to interpreting labor and inflation data also builds on his detailed February jobs report preview, highlighting the intricate interplay between market signals and policymaker decisions.
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