Last week's University of Michigan consumer survey reported that sentiment fell to its lowest level since February. A key factor in the wilting confidence was inflation worries, which by some measures are flashing red in a way they have not in a generation. Massive cash savings, faster income growth and generous tax credits will mitigate some of the price gains, even as all that liquidity makes the price problem worse. It is increasingly evident that inflation rules all facets of the economy at present. Our real personal consumption expenditures (PCE) outlook will have inflation headwinds to overcome in the second ... (full story)