Inflation Stall to Cause Fed 'Quandary' Mid-2023: Knapp

The video discusses the trajectory of inflation into 2023, highlighting a decline in goods and housing inflation. It examines the role of wages in service sector inflation, noting that wages account for only a small portion of price movements. The video predicts a favorable environment for risky assets in the first half of the year but anticipates challenges for the Fed in the latter half as inflation may stall. The discussion includes potential market implications and the Fed's policy considerations.

What is the anticipated behavior of inflation in the first six months of the year?

What quandary does the Fed face in the second half of the year according to the text?