Opinion
Why US inflation will defy gravity this time
Financial markets should get ready for rates higher for longer than hitherto anticipated due to the absence of factors to cause a sharp slowdown.
Adrian Blundell-WignallEconomistInflation in cosmology refers to the expansion of the universe. There was a big bang when inflation became unimaginably rapid. Then gravity slowed it to a more leisurely pace.
A large body of investors on planet Earth seem to have their own version of this for CPI inflation and interest rates. Inflation declines and the equity market can look through the risk of a mild recession. The bond market seems to believe that such economic outcomes will cause the US Fed to start easing.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Economy
Fetching latest articles