Mike Wilson: Fiscal Policy Continues to Drive U.S. Economic and Market Performance

This podcast episode discusses the impact of fiscal policy on inflation and equity markets. The authors argue that the increased government spending and direct payments during the COVID-19 pandemic led to higher inflation than monetary policy alone could achieve. This has led to a period of shorter and more volatile economic earnings cycles, which equity investors need to be aware of to navigate. The authors also discuss the potential for a significant correction in equity markets if growth fails to materialize as expected.