As we enter the new year, many reports have emerged that could be considered anomalous, such as retail sales and payrolls. However, the recent Personal Consumption Expenditures (PCE) number has brought into focus the message of the #bigflip.
While many pundits have suggested that the current inflationary cycle is a short-lived phenomenon that will transition away, the reality is quite different.
Inflation is becoming more entrenched with every passing day. With wage gains now firmly embedded in the economy, the Federal Reserve will have to take action to shock the business cycle into layoffs.
While this action may have its desired impact, it will coincide with election season, providing an opportunity for politicians to lambast the Fed's "cruel and merciless actions" while promising handouts if elected - leading to increased fiscal impulse.
This is reminiscent of the inflationary era of the 1970s, where the volatility of inflation increased and significant dislocation became more common. After years of quantitative easing and easy monetary conditions, we should now expect the opposite over the coming years. 
The #bigflip message is now clear. The longer inflation remains, the more entrenched it becomes, leading to greater volatility and dislocation. As the Fed takes action to control inflation, politicians will seek to capitalize on the opportunity
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