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Inflation Risk

All articles tagged with #inflation risk

finance1 month ago•6 min saved

Debt, Deficits and Policy Jitters Shake Global Bond Markets

Global bond markets have become volatile as rising US debt and persistent deficits prompt a reassessment of fiscal risk, pushing US yields near multi‑year highs and lifting inflation concerns tied to Middle East tensions and climate shocks. Investors expect rate rises from major central banks (ECB, UK, Japan) and a shift in funding costs worldwide, with knock-on effects for governments, corporates, and households; while the week’s sell-off eased somewhat, yields remain well above levels from three months ago.

via The Guardian|

#bond-markets #central-banks #finance

economy-and-policy2 months ago•21 min saved

Cheap Bills, Big Burden: The Hidden $1.45T Treasury Shortfall

A Fortune report reveals the Treasury Borrowing Advisory Committee’s warning of a $1.45 trillion funding shortfall in fiscal 2027–28 as the government finances a roughly $2 trillion annual deficit. It notes that Scott Bessent has leaned on cheap short-term bills to keep borrowing costs down, but that approach leaves the government more exposed to inflation and rising rates. The piece ties this tactic to Janet Yellen’s prior policy and to economists Miran and Roubini, and warns of two looming waves of long-term debt as the Fed reduces its balance sheet, potentially stressing markets even as debt-service costs outpace major priorities like defense.

via Yahoo Finance|

#deficit-financing #economy-and-policy #inflation-risk

world5 months ago•1 min saved

Executives warn markets underprice Iran war’s global economic fallout

Executives warn that investors are underestimating the Iran conflict’s global economic impact as markets rebound; they warn of rational complacency that could turn irrational, with concerns that the war will disrupt supply chains and lift inflation, evidenced by oil price gaps suggesting traders expect a longer disruption.

via Semafor|

#global-economy #inflation-risk #investors

business6 months ago•5 min saved

Oil Shock and Fed Caution Push Markets Toward Uncertain, High-Risk Horizon

As Iran-related conflict-driven oil surges heighten inflation concerns, traditional hedges fail and stocks fall while central banks pause on rate cuts; the Fed is unlikely to ease soon and futures hint at mixed policy signals, sending yields higher and gold lower. Traders face dwindling shelter from risk, raising the specter of a volatile, high-stakes period that strategists call one of the riskiest moments of the century.

via Barron's|

#business #fed-policy #inflation-risk