Insight - CPI lowers bar for stimulus but raises risks

Wall Street logo bldgIt is part of a much bigger and consequential disconnect between the economy and financial markets, or what is commonly referred to as Main Street versus Wall Street. In the short term, it opens a bigger window for significant additional fiscal stimulus to supplement ultra-loose monetary policy and financial conditions.

THE economic and financial data so far this week have highlighted once again the enormous contrast between the reported inflation rate for goods and services and the one for asset prices.

It is part of a much bigger and consequential disconnect between the economy and financial markets, or what is commonly referred to as Main Street versus Wall Street.