Economic Probability Has Changed for Markets: Morgan Stanley’s Kushma

The transcript discusses the need for daily recalibration in financial markets due to new information, focusing on the volatility and changing probabilities of forecasts. It examines the implications of the CPI report and inflation concerns, questioning whether the Fed's stance is appropriate. The discussion highlights the challenges market participants face in adapting to a more volatile data environment, especially after a long period of stable conditions. The transcript concludes with a reflection on the Fed's response to inflation projections and the potential for a new economic paradigm.

How might market participants adapt to a more volatile data set based on recent trends?

What implications does the Fed's stance on inflation have for market expectations?