Debate on inflation drivers continues, James E. Thorne argues

Debate on inflation drivers continues, James E. Thorne argues
Fed faces scrutiny over rate hike calls

James E. Thorne questions the current stance of the Federal Reserve and Wall Street in favor of additional rate hikes.

He distinguishes between a change in relative prices and actual inflation, referencing indicators such as Trimmed Mean PCE and five-year inflation expectations. Thorne further points out concerns over decision-making in a "post factual world," suggesting that cheering from parts of Wall Street may overlook potential policy mistakes from the Fed.

Thorne has previously examined how accelerating digital technologies may drive S&P 500 earnings growth beyond traditional expectations in a recent analysis. He also addressed the potential market impact from the AI super cycle, including a long-term S&P 500 target, in a separate discussion. These earlier comments provide additional context to his current skepticism of prevailing monetary policy views.

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