In this episode, we take a different tack. We begin with the latest inflation figures, which offer little comfort to policymakers, before turning to the our bear case for the equity markets. From the pandemic-era flood of fiscal and monetary stimulus to the abrupt tightening that followed in 2022, the economic pendulum has swung with unusual violence. Now, as higher rates bite, the data point to a steady loss of momentum: hiring is slowing, corporate profits are softening, and consumers—once flush with savings—are beginning to retrench. The question is not whether the economy is cooling, but how sharply it will do so.