Thursday 16, June 2011 by
US inflation will be ‘stubbornly high’ – LGIM
The US has enjoyed two decades of economic growth without problematic inflation leading to some complacency as market participants have become used to a low inflationary environment. “For the past two years, the US Federal Reserve (Fed) has been more worried about deflation than inflation. We believe the US growth and inflation mix is in the process of deteriorating significantly – which will pose a dilemma for the Fed,” said Drayson.
