Five reasons why US inflation risks are still rising
I posted earlier from Deutsche Bank's outlook for the Federal Reserve:
- Aggressive Fed easing more like a Christmas wish list rather than the most likely outcome
A separate piece from Deutsche Bank says not to ignore the risk of higher inflation, outlining five reasons this is rising:
- Central banks have implemented more aggressive short-term monetary easing than anticipated.
- Commodity prices are rising due to China’s stimulus measures and ongoing tensions in the Middle East.
- U.S. economic data remains solid, suggesting the economy may avoid a more severe downturn.
- The September CPI report exceeded expectations, showing stronger inflation.
- Money supply growth is picking up pace.
AI image