#147 Andreas Steno On Why The Resurgence In Inflation Could Mean Another Rate Hike From The Fed

Andreas Steno, founder of Steno Research, discusses the resurgence of inflation and its impact on the global economy, and his contrarian take that the next move from the Federal Reserve could be a rate hike.  In this episode, Steno highlights the labor market as a major driver of inflation, with wage pressures increasing due to labor scarcity. Steno suggests that the Federal Reserve may need to hike interest rates instead of cutting them, but acknowledges the political challenges of such a move.  He also discusses the macro situation in Europe, with Germany and France struggling while southern European economies thrive. Steno is the former Global Chief Strategist of Nordea, Northern Europe's largest bank. This episode was recorded on February 19.  Links:  https://stenoresearch.com/ https://twitter.com/AndreasSteno Timestamps  00:00 Introduction 00:49 The macro view: inflation resurgence 02:38 Indicators of inflation resurgence 04:40 Labor market and wage pressures 07:00 Federal Reserve's interest rate policy 09:00 Possibility of a rate hike 10:26 Implications for markets 14:12 Structural changes in the labor market 15:48 Surprising rebound in asset markets 18:50 The European macro situation  21:40 Implications of production shifts in Europe 24:00 Watching Europe from the outside 26:00 Portfolio construction  27:50 The Fed's rate hikes paused too soon 29:15 Parting thoughts