Although there is no certainty yet that inflation is coming, many warning signs are already clearly visible.
Here are three of them:
FIRST SIGN: On August 27, Jay Powell, Chairman of the US central bank, gave a much-anticipated virtual speech at the annual Jackson Hole monetary policy meeting to talk about the central bank's new inflation target.
Here is star analyst Luke Gromen's summary of the speech:
“There is too much debt in the US & globally. It’s hurting growth.
This can be resolved [in] 1 of 2 ways:
- Widespread defaults (including on sovereign debt).
- Inflate it away.
Today we are accelerating Option #2.”
SECOND SIGN: Many commodities, along with the precious metals markets, have seen their prices reach new heights.
As you can see in the chart below, the price of lumber 🌳 recently soared to levels never before seen in history.
This next chart shows how iron ore 🚄, the raw steel material, has increased and now trades at its highest price in six years…
As we've said, we can't be sure yet that inflation is coming (yes, this is a Jon Snow reference 😎), but the signs are starting to point this way.