Economics 

The US inflation danger

Chris Dillow

Chris Dillow
The US inflation danger

Is the US heading for higher inflation? Bond markets think so: the five-year breakeven inflation rate (the gap between conventional and inflation-proofed bond yields) has risen to a 10-year high, albeit of only 2.3 percentage points. And some of the grandees of the economics profession agree. Former Treasury Secretary Larry Summers has warned that President Biden’s plan for a $1.9 trillion fiscal stimulus could cause “inflationary pressures of a kind we have not seen in a generation”, a warning echoed by Olivier Blanchard of the Peterson Institute for International Economics.

Join our community of smart investors

Subscribe today and enjoy unlimited access:

  • Comprehensive companies coverage
  • Actionable commentary, ideas and portfolios
  • Tools and data to help you manage and track investments.
  • Help managing your portfolio 
Explore subscription options
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now