Investment bank Morgan Stanley put forward 5 reasons to explain why U.S. inflation is heating up or not only “temporary”!
The Federal Reserve believes that because the epidemic affects transportation activities blocked supply chain, resulting in global commodities in the economic rebound demand recovery in the context of oversupply is the main thrust of inflation upward.
However, the bank pointed out that the following five factors may be the root cause of inflation, including: (1) the continued risks of the global trade environment; (2) the U.S. government’s high level of debt forced the Federal Reserve to assist in disguised money printing financing; (3) the Fed’s easing policy in the context of the depreciation of the dollar brought about by imported inflationary pressure; (4) the impact of the aging of the U.S. population; and (5) the further digitalization of the financial sector on the monetary multiplier impact.
Morgan believes that the above five causes are long-term and can not be eliminated by simple means, which means that the trend of rising inflation in the United States will also be further accentuated after, and thus become a dilemma for the Federal Reserve’s policy orientation.
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