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00:00I'm fascinated. Princeton, the intimidation of sitting in the class with Alan Blinder. He wrote a brilliant essay in early January for The Wall Street Journal and he said, what if inflation suddenly dropped? How does your world change if we get blinders talking about an inflation suddenly drops. Inflation is the thing. There's short term inflation in the goods sector that's already started dropping. Right. And I think what we're waiting to do, the point you were alluding to earlier, the shoe we're waiting to see drop is the tight labor market. So those are the short term pieces that we think we'll see some leeway on anyway. And that's what the market's pricing in. But there's a longer view to be made, you know, since we're talking academia, that a lot of structural forces at play that are not going to bring us back to 0 percent or almost no inflation, just, you know, with the flick of the Fed's wand. The demographics are what's causing a tighter labor market. There's globalization, sort of the geopolitical harmony that led to all the globalization of the past 20 years seems to be dissipating. So I think we're underwriting to a base case of inflation, not going back down to to the laws. It was immediately. And that's OK.

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Structural Forces to Impede Inflation’s Fall: Invesco’s Lodaya

Ananya Lodaya, global equities portfolio manager at Invesco, explains the factors that can prevent inflation from falling to the target range despite the best efforts of the Federal Reserve on “Bloomberg Surveillance.” (Source: Bloomberg)

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