Inflation Focus As the U.S. Senate debates a $1.9 trillion COVID economic recovery effort, the issue of its potential for stoking inflation has been forced into the debate by a frisky bond market. Indeed, equity markets fell today despite Federal Reserve Chairman Jerome Powell saying that easy money must continue until the economy recovers. One would have expected the market to fall if he had cautioned about inflation and thus the potential for higher interest rates. The markets appeared to either ignore or disagree with Federal Reserve policymakers. The Fed could note that recovery from the great recession was slow, but others will note the spike in inflation in 2011, and that occurred with far lower levels of liquidity being pumped into...

TAGS – India, North America