The Julia La Roche Show · Tuesday, September 8, 2026
Larry McDonald suggests that the recent move in diesel prices could begin to impact inflation in the coming months, drawing a parallel to the situation in 2022. He recalls that in late 2021 and early 2022, high earnings expectations and the Fed's stance on transitory inflation led to an explosion in inflation rates.
“Well, the bad news and the good news mean if you're an inflation believer, the move in diesel this summer is going to start playing out in the next couple of months. So that's why it's a lot like 2022.”
“Where, uh, from 2021 into 2022, in that third, fourth quarter of 21, the expectation for earnings was very high. Um, the Fed governors were pounding the table that inflation was transitory. And so inflation expectations, uh, were tame. And then all of a sudden, they exploded higher.”