During an interview on "Mornings with Maria" expert Larry McDonald reacted to the March 2022 PCE price index, saying that U.S. inflation is a cause for concern if it normalizes at a higher rate around 4 or 5%.
LARRY MCDONALD: If inflation normalizes, everybody knows like a 2-year-old can tell you it's going to come down from a record high rate base. Right. But if it normalizes at a higher [rate], there's probably $2 trillion of assets that are in the wrong place. So the previous decade, we had BREXIT's trade wars, multiple COVID's, we had inflation normalizing at 2%. So everyone knows it's not breaking news. Inflation is going to normalize, lower. But if it normalizes at 4,5 instead of 2, there's 2 to $3 trillion that's misallocated. And this is a crisis and people have to wake up to this fact.
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