PremiumInflation Risks Are Now Even More Woefully Underpriced
This article is so good
it's for premium members only.
Does that sound like you?
Already a member? Sign in.
PREMIUM
ONLY $30/MONTH
BILLED ANNUALLY OR $35 MONTHLY
All BASIC features, plus:
- Premium Articles: Dive into subscriber-only content, market analysis, and insights that keep you ahead of the game.
- Access to our Private X Account, The Market Ear analysis, and Newsquawk
- Ad-Free Experience: Enjoy an uninterrupted browsing experience.
PROFESSIONAL
ONLY $125/MONTH
BILLED ANNUALLY OR $150 MONTHLY
All PREMIUM features, plus:
- Research Catalog: Access to our constantly updated research database, via a private Dropbox account (including hedge fund letters, research reports and analyses from all the top Wall Street banks)
Authored by Simon White, Bloomberg macro strategist,
TIPS have burst into life after Donald Trump’s win, with breakevens up over 10 bps, but the market is still to fully reflect extant inflation risks that have been exacerbated by the result of the election.
Donald Trump’s victory wasn’t necessary to stoke inflation in the US, but it helps. Price growth has become entrenched and the fabled last mile of disinflation is becoming a marathon. Resilient growth, strong corporate-profit margins, burgeoning stimulus in China and a nigh-on $2 trillion US fiscal deficit had already set inflation on a path of revival. If Trump governs as expected – tariffs, tax cuts, more spending - price-growth risks have only intensified.