Brian Kersmanc

You hear this with some of the industrial players.

They're saying that they're going to have to start incorporating some of these higher transportation costs, diesel costs, and things like that on a longer-term basis over the next couple of quarters if this doesn't rectify itself.

um you even talk to like the shipping companies maersk for example said that shipping spot rates are up 40 percent uh since the start of the straight hormones closing i mean that literally filters into everything that we look at in terms of a global economy um so i would argue that that does have upward pressure on inflation you saw that in the ppi data which was incredibly strong uh from from a may standpoint you know talking almost double digits from from that standpoint and that was on goods and services so it's not just isolated in one spot

So I think this is actually starting to come through.

And I think what you're hearing from the markets is generally people are getting out of this mode of, okay, we need Fed cuts because the economy is maybe struggling.

The economy seems to be doing okay despite all of this.

But what you are hearing is that, okay, we've missed inflation for so long now.

And here was Warsh had said more recently that they have this very singular focus now on price stability.

He made it very clear in terms of the comments that he had there.

So if that's becoming more of a focus, how is that going to impact things?

And I think that has large implications, especially in a market that is so one-sided and lopsided on tech right now.

And tech is generally extremely sensitive to interest rates in terms of the longer-term valuation trends, but also they're going through massive debt raising at this point in time too.

So that's going to be much more expensive for all this capital buildup.

Thanks for having me.