-
Inflation Expectations Are Higher – and Will Probably Keep Rising
Breakeven inflation rates have ticked up in recent months. But is this a temporary phenomenon, or the beginning of a more persistent trend? While PIMCO expects inflation pressures to remain relatively subdued, we see a few reasons why the current monetary and fiscal policy rhetoric are likely to support higher inflation. The post-crisis reconstruction of the financial system that began over a decade ago has yielded mixed results globally. Risk assets clearly experienced a renaissance of sorts as investors strove to keep up with even modest price appreciation in a zero to negative interest rate regime. However, ... (full story)