What if the recent trend of disinflation is nothing more than an illusion?
This article was originally published by The Felder Report.
That may, in fact, be the message in the bond market…
…which raises the possibility of a de-anchoring of inflation expectations and an inflation spiral.
Renewed strength in the commodities markets would only compound the problem.
Meanwhile, equities are acting as if the inflation dragon has been slain and interest rates are headed back to zero.
