Inflation Proves Stubborn in January

...the sharp decline in the money supply that began last year will lead to rapid disinflation in the coming months and perhaps a recession. Wall Street forecaster Ed Hyman of Evercore ISI and Don Luskin of Trend Macro are anticipating similar inflation declines and are warning about the risk of recession. They note that Milton Friedman said monetary policy works with “long and variable lags” of a year or two.