Food and Gas Prices to Stay High as Jobs Outlook Improves

Inflation is expected to remain above 3% for over a year, likely between 3.2-3.4% through August. This will make it difficult for the Fed to meaningfully reduce inflation.

Fiscal support and immigration are helping to boost jobs and economic growth. This bifurcates the economy into winners like big tech and losers like consumers facing higher rates.

Asset prices may continue climbing even if consumer inflation remains high and the Fed can't cut rates due to economic uncertainty.

The strong March jobs report signals surprising economic strength that may generate more inflation risk.

The Fed may talk tough on inflation but face difficulty following through on projected rate cuts this year due to high uncertainty.