🚨 FED IS LOSING THE WAR WITH INFLATION Michigan 1Y inflation expectations data jumped to 4.6% today vs. 4% last month. 5Y inflation expectations also rose to 3.4%, the highest level in 4 months. This is a sign that inflation is going to remain elevated for longer, and there's just one way to deal with it. Hike the rates aggressively just like the Fed did in 2022. But there's one major problem right now. US long-term yields are already at 19+ year highs, with debt surpassing $40 Trillion. A single hike here would add hundreds of billions in more interest expense for the US government, which isn't sustainable. So either the US should strike a deal with Iran so that inflation comes down, or the US economy is set for a bumpy ride in the coming months.