Excerpt from "Jobless Claims Decline Further Last Week"

By Tim Smart - U.S. News & World Report

May 13, 2021

Overall, the economy is performing strongly with some forecasting gross domestic product growth this year of 7%, which would be the best in decades. However, the April jobs report has called that narrative into question and Wednesday's news that inflation surged in April to an annual rate of 4.2% did not help. The Dow Jones Industrial Average slumped 682 points.

Already, a partisan debate is unfolding over whether too much government stimulus spending could lead to an inflation-induced economic or market downturn.

"Is this inflation spike transitory, or is it on a sustained trajectory?" asked David Kotok, chairman and chief investment officer at Cumberland Advisors, in a note to clients Thursday. "Is it a monetary-induced inflation or a shock response? How do we know? And when will the answers become clear?"

"The answer, for now, is that we don't know when, and we don't have the metrics to prescribe shock response policymaking," Kotok wrote Thursday. "The Fed doesn't have those metrics either."


Read the full article at U.S. News & World Report: https://www.usnews.com/news/economy/articles/2021-05-13/jobless-claims-decline-further-last-week

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David R. Kotok
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U.S. News & World Report