Broker Check
 

Is the Inflation Genie Out of the Bottle?

| March 22, 2021
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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.

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