John Chang questions the Fed's inflation timeline, pointing to wage growth at 5.5% and energy prices up 32% year-over-year as signs inflation will stay elevated longer than officials expect.
As we came into the inflation cycle, the Fed kept saying this is temporary, it's going to go down, it's supply chain related. And then they shifted their stance and said, well, it's a little worse than we thought. It's going to be around a little longer than we thought. And they're still saying, hey, by the second half of 2022, we should have this back under control. I think that might be a little optimistic. If you look at the underlying drivers, you have wage growth at about 5.5%. You have energy's up 32% on a year basis.
