In this month’s report, Lower Inflation, Higher Prices, RGFO Chief Investment Officer Jimmy Chang reflected on the opposing views of policymakers and households on inflation. While the former may be relieved that they have brought inflation lower without much damage to the economy thus far, the latter is stuck with higher absolute and relative price levels as wage increases have not kept pace. Higher rates have continued to disrupt various segments of the economy, from housing, commercial real estate, to even green energy. Whether there will be a soft-landing depends on the job market, which has remained healthy but started showing signs of weakening.
