By Eric Peters, CIO of One River Asset Management
Aglow
“I keep hearing people say that a wage-price spiral is unlikely because there are fewer labor unions and labor has less bargaining power,” said Lindsay Politi, our inflation PM. “The idea is that workers don’t have the same ability to demand automatic pay increases to keep up with rising costs from inflation today as in the 1970s,” she continued, the two of us at our Bloomberg’s early Wednesday, nerding out before my flight to London. “And as a result, the recent rise in inflation will be less sticky.”
