Stagflation is hereLatest CPI shows CPI remaining higher while economic growth in the US in Q1 was anemic.
Stagflation is the descriptor and the last time this happened.. 1975- 83....POG skyrocketed .
Which is why POG continues to rise.
The FED is trapped.
It cannot raise rates when economic growth is anemic so high CPI cannot be attacked by that move.....even worse, as in the 1970s, CPI is not caused by demand but by supply..but it cannot cut rates as that would boost demand.
So, we are in a goldilocks situation for the POG.
There will be volatility, but high POG seems assured ..