Commentary
Since the assertion by the chairman of the Federal Reserve, Jay Powell, echoed by Secretary of Treasury Janet Yellen, there is already a common (market) belief that the U.S. Goldilocks economic outlook is highly likely. Although this is not theoretically impossible, there needs to be a more understanding of the rationale behind it or such a conclusion will become a kind of religious belief. It seems those who uphold this belief are based largely on the experience of stagflation in the 1970s; in fact, the current inflation ups and downs can match well with those in the old days.
