Trading Day: Market elation trumps brewing stagflation

If anyone wanted a snapshot of the tight spot the U.S. economy and policymakers are in right now, they got it on Friday via the University of Michigan's latest consumer sentiment and inflation expectations survey. The results were eye-popping: consumer sentiment expectations are now the lowest since 1980 and one-year inflation expectations are the highest since 1981, above 6%. Fed Chair Jerome Powell said earlier this month the link between the two in recent years has been "weak" and he has previously downplayed the U-Mich inflation expectations figures.