Broker Check

Is the Inflation Genie Out of the Bottle?

| March 22, 2021

Key Takeaways

  • Rising rates and the likely scale of US fiscal stimulus has raised concerns of inflationary pressures.
  • Rising inflation does not differentiate between temporary and long-term sustainable inflation. This near-term increase in inflation could prove temporary.
  • For investors, a period of higher inflation even if temporary paired with low rates could prove costly for excess cash which earns an even more negative real rate.

For further information please see the attachment below.