The Economy May Be Set for a Supply-Side Surprise

Will 2018 be the year the supply side of the economy roars back to life? If so, the Federal Reserve’s expectations for inflation may once again be met with disappointment. But be wary of believing this would portend a dovish year for policy. A supply-side rebound would likely trigger upward pressure on the long end of the yield curve, giving the Fed more room to raise rates.

Continued here on Bloomberg Prophets…