Two Too-Hot No-Landing Indicators Hit Markets

The stock and bond markets reacted badly to today's stronger-than-expected personal income data and hotter-than-expected PCED. Is the economy experiencing an inflationary no-landing scenario? If so, Fed officials might conclude that the only way to bring inflation down is to push interest rates up until they cause a hard landing.  

More likely in our opinion is that these two indicators along with January's other economic stats were boosted by unusually mild winter weather and are bumps on the road to a soft landing. February's indicators will be closely watched by Fed officials and all the rest of us with skin in the game. Here are our quick takes: