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Flash Report May 2021

Reopening and stimulus are boosting spending and real economic growth. At the same time, accelerating growth is lifting wages and prices. Continuing to supply massive monetary and fiscal stimulus to a US economy—already recovered from last year’s recession—risks creating excessive inflation, leading to Fed rate hikes earlier than markets expect. Even with OPEC exploiting climate change to its advantage, we believe technology-driven productivity gains and automation will constrain inflation and support equity returns.

WRITTEN BY | June 1, 2021

 

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