Conundrum 2.0

Let's take a snapshot of the US economy in mid-2021. The rapidly accelerating CPI inflation rate is now at a 13-year high (>5% year-on-year). Real GDP growth is at its highest level in 71 years (>12%). The yield on the 10-year risk-free rate continues to erode towards 1.3%, a level one would spontaneously associate with an economy flirting with recession or deflation. A conundrum? Admittedly, with hindsight, everything can be explained one way or another, but given the expected e...