David Kelly, JP Morgan Asset Management, and Ernesto Ramos, Columbia Threadneedle Investments, join ‘Squawk on the Street’ to discuss Ramos and Kelly’s thoughts on Wednesday’s inflation reading, when inflation will begin to slow and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
» Subscribe to CNBC TV:
» Subscribe to CNBC:
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30:
Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:
#CNBC
#CNBCTV…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation Still Running Hot but Likely to Cool, Says JP Morgan’s David Kelly
Inflation has been a hot topic of discussion lately, with prices rising at an alarming rate across various sectors. However, according to JP Morgan’s Chief Global Strategist, David Kelly, this upward trend is likely to cool off in the coming months.
Kelly points out that recent inflation numbers have been higher than expected, causing concerns about the persistence of this trend. The consumer price index (CPI) rose by 5.4% in June, the highest year-over-year increase since August 2008. This surge in prices has fueled fears of sustained inflation, leading many to question whether this trend is transitory or here to stay.
However, Kelly believes that this spike in inflation is primarily due to temporary factors associated with the reopening of the economy and should ease as the year progresses. He cites supply chain bottlenecks, labor shortages, and pent-up demand as key contributors to the current inflationary pressures. As the economy continues to recover and these disruptions are resolved, inflationary pressures are expected to subside.
One of the main factors driving the recent surge in prices has been the supply chain disruptions caused by the pandemic. This has resulted in shortages of raw materials and components, leading to higher input costs for many industries. As the situation normalizes and supply chains catch up with the increased demand, price pressures should ease.
Another factor contributing to the inflationary environment is the labor market. The pandemic led to high unemployment rates, but as the economy recovers and businesses reopen, there is a shortage of available workers. This labor shortage has pushed up wages, which, in turn, has increased production costs for businesses. However, as more people return to work and the labor market stabilizes, wage pressures are likely to diminish, leading to a moderation in inflation.
Furthermore, the pent-up demand from consumers cooped up during lockdowns has played a significant role in driving up prices. People are eager to spend and make up for lost time, and this surge in demand has caused some sectors to see substantial price increases. However, as this pent-up demand is satisfied and consumer behavior normalizes, the intense upward pressure on prices is expected to level off.
Kelly’s analysis and prediction align with the views of the Federal Reserve, which has also characterized the current inflationary pressures as transitory. The central bank has maintained that it will hold off on tightening monetary policy until it sees sustained progress towards its employment and inflation goals.
While the recent surge in inflation has caused concern among businesses and consumers alike, there are reasons to believe that this trend will cool off in the coming months. Although certain factors leading to higher prices may persist in the short term, the gradual resolution of supply chain disruptions, the stabilization of the labor market, and the normalization of consumer behavior are expected to alleviate the inflationary pressures.
As the economy continues to recover and adapt to the post-pandemic environment, the focus will shift from short-term price fluctuations to long-term growth prospects. It will be important for policymakers, businesses, and consumers to navigate this transition with a balanced perspective, considering both the risks of inflation and the potential for a cooling period ahead.
I needed a laugh. Thanks.
Rubbish. The official inflation figure might fall but the real inflation figures will be out of control
77% of registered voters say government corruption is the most serious issue facing our nation.
These guys are delusional there investors want out
privileged banker taking home millions in taxpayer funded bonus with plenty of money to buy bread, gasoline and stripper services, working for Mr Dimon another billionaire on public money in free competitive markets calming the public about inflation. Great.
another compulsive liar
"Likely" hahahahahaha they have been saying that for a year now, when are they gonna stop???
USA is done and dusted.
Inflation to cool? Like an ice cube in hell is more likely. nonbiden and House dems are doing constant damage 24/7 to the economy and feeding inflation at every turn. What IS going to happen is 15% inflation by end of summer.
By the way: total gov't lie= inflation does NOT include, food, medicine, gasoline or home energy. For everyone out side the WH, does 100% increases since 2021 not effect you?
There it is again, you Racist – MAGA, Deplorable's – Remember this VOTE the Dem's out this Fall and Biden out the door in 2024…
Remember – Biden blowing smoke sheep – He is in charge, its his job, the buck stops with Joe, not Trump, not Texas, not Putin, not the war- its Joe Biden that is sitting in the chair and working on 2nd year…what has he done but crash everything he has touched – day one he went to war with the Oil, Gas and Coal industry, he said he was going to "work it out" meaning Fossil Fuels – and day one, cost for Energy started up and up and up….
SHEEP – Don't let Biden's smoke screen blind you – abortion topic is important but what about – Inflation, Food Cost, Gas cost per gallon Highest in US History – Interest Rates skyrocketing / Food Supply Shortages / Electric Shortages coming / Crime rate Highest in US History, criminals running the streets, US Citizens are not safe / Border wide open, Illegal Immigration flooding the US Population during a World Wide Pandemic – put US Citizens at risk, exposure / Stockmarket crashing worst since 1942 / War, International Relations at all time low / President that can't even speak correctly or lead, weak leadership around the world – we are the USA / World Super Power and Biden is hiding in the basement…
Biden – what is the Short Term / Long Term Plan…
Short Team – should be – We are going to Open Up 100% our Drilling and Oil, Gas, Coal production in the USA / start up Keystone Pile Line, add additional pipelines and encourage expansion of Gas production to meet current demands..We are going to start this year on building Nuclear Power Generation..this day one would impact Oil per Barrel Cost on the world market just by messaging.
Long Term – 10-20-30 year plan – we are going to continue to develop and produce EV Automotive / support "ALL" US manufactures with credits to help move future purchases to EV (Support all Union and NON-Union Companies) not just the UAW…
Long Term – we are going to support Energy Companies to update, add Transmission Lines, Transformers, Stations, Supply and Storage Capabilities.
Long Term – we are going to encourage and work with Builders to add Solar and Solar Storage to all new Construction Homes and Businesses.
Long Term – we are going to continue to expand Wind / Solar and develop power storage capability to help supply "constant" power supply to the grid..
Put an actual plan together Biden.
American ppl need more 10% wage increase to fight super high inflation!!!!
Brandon, U r not a president, u r arms dealer!!!
It’s mind boggling when you realize that the analysts have no F***ing clue about what’s about to come! Listen to Michael burry! He is right! Data shows what’s coming but people and these professionals don’t see it!
Brandon is running the show and as long as he is making policies you can count on what will happen. If you deny this fact you deserve to lose everything.
Inflation won't cool by itself, only way is intrest hike & that means RECESSION all those bankers feed you false ideas & want to keep stockmarket high as long as possible, they lie not to spread panic, but imagine lion comes & bankers say: it's ok, stay here. On liOns path while panic would advice you – RUN FOOL.
100 TRILLIONS OF USD DEBT AND MARKET IS IN SHOCK AND AWE TO SEE A TINY INFLATION !!!
The Fed interest rate has to go up into the double digits as was done by Paul Volcker to stop HYPER INFLATION. A 0.5% hike is NOTHING !
Bull crap
What a bunch of bs
UP 6 % Today. * IQST.. IQSTEL New EVOSS Electric Motorcycles Launched Globally Online. 2 New IQSTelecom Acquisitions. DEBT-FREE co' 2021 Audited Financials. Gross Profit UP 59 %. Operates in 15 countries. 5 Divisions.
* XOS..UP 5 % Today. Large EV Trucks Fleet Week Live Stream Product Reveal Yesterday. New EV Trucks MDXT and HDXT.
UP 4 % Today. * FFIE.. Faraday Future FF 91 Fastest EV AI tech Ultra Luxury 1,050 hp Spa Function SUV EV Arriving July 2022.
It's utterly self-defeating to think you can time the market. Of course a crash is coming. There's always one coming. I invested through the dot-com crash, the 2008 financial crisis crash, the 2011 debt crisis crash, and of course last year's pandemic crash. I never sold stocks out of fear the market was overvalued, and I never sold during any of these market dives. I did take profits here and there in individual stocks that I thought had gotten expensive, but overall I kept my portfolio intact. And the market overall has continued to rise all through my 25 years as an active investor. I was there in 1996 when Greenspan warned of "irrational exuberance." Care to guess where the DJIA was trading then? Near 6,000. It's 32,000 now despite the three major crashes it's been through since.
“Likely” just like inflation was transitory and would peak fall of last year. Core CPI rose and if you are a normal living American you know inflation is still surging. Gas, food, rent, energy. It’s bad for a lot of people.
Where is Art Cashen..
And penguins will grow elbows soon.
˜”*°•.˜”*°• The whole truth about the coronavirus. Watch the video you will be shocked EVERYDAYS.ML Let's take the moment to appreciate how much effort he puts into the content for us ♥ •°*”˜…•°*”˜