The Old Economy Is Putting A Lid On Economic Potential | Macro Corner Episode 12

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Paul Wankmueller, CMT and Jannis Meindl discuss the lack of fixed asset spending in old economy sectors and the implications for the Fed as well as the economy as a whole. As output gets constrained by a lack of capital formation, the two also talk about the inflation outlook and current market expectations. Macro Corner Chart Booklet accessible: here.

Check out Jannis Meindl's Sunday article published yesterday The Structural Underpinnings of the U.S. Economy Compared to FOMC Projections.

Timecodes:

0:00 - Disclosure 

0:18 - Podcast Intro 

1:31 - Old Economy Constraints 

2:46 - Real vs. Potential GDP Growth 

4:44 - Energy Markets & Open Interest 

11:32 - The U.S. Output Gap 

14:15 - 2-Year Yield Dictating Monetary Policy 

18:20 - Europe's Energy Crisis 

22:24 - Podcast Outro

This podcast was recorded on August 22, 2022.

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