When people think about stagflation I think they focus more on a surge of inflation than the drop in growth but tariffs could end up merely modestly lifting inflation while having a sharper negative impact on growth, which could be bullish for bonds.
Reposted from
Carl Quintanilla
".. 10yr yields flattish despite the risk off tape – likely a function of hawkish/inflationary take aways. What is push pull between inflationary but economically dragging?"
- B of A desk #stagflation
- B of A desk #stagflation
Comments
Inflation is more 🤷♂️, hit to growth is easier to pencil for me