Inflation Expectations Are Now On The Verge Of A Major Breakout

Sharing is Caring!

‘Stagflation is here,’ following months of rising prices, BofA analysts say.

For months prices have been rising as the U.S. economy has recovered from the COVID pandemic while financial markets have stayed priced for perfection and central banks have clung to the view that elevated inflation would likely subside in short order.

Now, fears about higher prices are coming to the fore, with BofA Global Research analysts declaring in a Friday note that “stagflation is here” and a government report showing U.S. inflation still at a 30-year high as of August. Even central bankers appeared to be starting to capitulate this week, with Federal Reserve Chairman Jerome Powell saying that high inflation could run into 2022.

 

See also  Persistent Inflation Poses a Real Threat to Stock Prices
See also  Wealth, Inflation And An Energy Crisis: Pay Attention!
618 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.