Bloomberg Television · Morgan Stanley's Gapen Expects Inflation to Peak in May or June

1. 1. Morgan Stanley sees hints of energy price second-round effects influencing core inflation, requiring monitoring.
2. 2. Current CPI readings show a "trifecta" of factors pushing inflation higher this month.
3. 3. Morgan Stanley expects year-on-year inflation to peak in May or June.
4. 4. The Fed will likely "look through" inflation with a long lag, remaining sidelined this year.
5. 5. Companies display strong pricing power, passing cost increases to consumers and expanding profit margins.