Morgan Stanley IM: Wages, Inflation, Stability, Policy: Something’s Got to Give
Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer, Global Balanced Risk Control Team, shares his macro thematic views on key market drivers.
30.05.2023 | 05:40 Uhr
The key macro factors at the moment are: 1) jobs/wages; 2)
inflation; 3) financial market stability; and 4) central bank policy.
Each are seemingly at odds with the other.
Labor markets remain tight and inflation remains stubbornly high…why is that?
We agree with Chairman Powell and the academics on this one: wages
are not the cause for inflation, they are the result of it. Thus, a
softening labor market that cools wages needs to be preceded first by a
But does the economy need something to break in order to lower inflation, or is it different this time? We discuss in today’s audio.
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