Financial markets are relatively calm this morning with Treasuries and equity futures little changed to start the day. A Financial Times article today reports that several U.S. companies plan to raise prices soon due to rising input costs. Based on discussions with analysts during earnings calls, executives from companies such as Coca-Cola, Chipotle, Whirlpool, and Proctor & Gamble all said they were preparing to raise prices on products due to higher commodity costs. Lumber prices are at the highest level since futures began trading in 1985 and up 60% year-to-date. There could be some big inflation prints in the coming months, and if so, Fed leaders will be challenged in selling the “transitory” message to financial markets.
Jason Haley
Chief Investment Officer
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