Macro Insights Weekly - Upside risks to US inflation

The US economy is at once showing downside risk to growth and upside risk to inflation. A daunting challenge awaitsthe Fed, already under tremendous political pressure.
Demand is slowing, as per a range of indicators of activity.
Inflation risks are entirely policy inflicted.
Retailers last faced price pressure like this was back in mid-'22, when inflation was 9%.
Inflation momentum is on the rise, price pass-through to consumers is coming.
The Fed's policy balancing of weak growth against rising inflation would make or break markets.