The US is in a cardboard box recession, Charles Schwab's Jeffrey Kleintop said.
According to the Fibre Box Association, that's led to a drop in cardboard box demand – an overlooked recession indicator that has preceded previous downturns for the US economy.
"The Cardboard Box Recession may be good news for inflation," Kleintop said, pointing to positive inflation trends in Europe.
The Fed could pause rate hikes as the inflation situation improves, which commentators have said could be bullish for stocks.
The five-year, five-year forward rate, an estimate of the five-year inflation rate five years from now, dropped to 2.23% this week, per Federal Reserve data.
Persons:
Charles Schwab's Jeffrey Kleintop, Kleintop, —, Charles Schwab, Jeffrey Kleintop, that's
Organizations:
Service, Fibre, Association, National Bureau of Economic Research
Locations:
Europe