The New President Will Have His Work Cut Out For Him

The following chart is courtesy of Tom McClellan. He writes a daily report as well as a twice monthly newsletter, and they come highly recommended! You can find more info on his website (as well as his older guest post here).

The chart below shows inflation (as measured by the CPI-U) as a leading indicator for unemployment. The CPI time series is shifted forward two years on the chart.

The simple take away is that with inflationary pressures rising, unemployment rates are likely to be going up for the next few years. . .