Key Points
- In an out-of-consensus forecast, Deutsche Bank is warning of a potential crisis coming from inflation.
- “The effects could be devastating, particularly for the most vulnerable in society,” the firm’s economists said.
- Most on Wall Street and at the Fed see inflation is a temporary problem that will ebb as special factors fade away.
The analysis especially points the finger at the Federal Reserve and its new framework in which it will tolerate higher inflation for the sake of a full and inclusive recovery.
The firm contends that the Fed’s intention not to tighten policy until inflation shows a sustained rise will have dire impacts.
Deutsche Bank warns of global '''time bomb''' coming due to rising inflation