Hot US inflation has three risks for investors – and one great hope
Worse-than-expected US inflation data guarantees the Federal Reserve will keep raising interest rates. Former Bank of England boss Mervyn King says investors need to watch three key risks.
Forget the bewildering bounce on Wall Street on Thursday night.
The latest US inflation data is unequivocally bad news for the Federal Reserve and for markets, confirming the Fed has no choice but to keep tightening until it breaks something – labour markets, global economic growth, the plumbing of the financial system, or possibly all three.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
