“BofA warns hot inflation might run rampant for another 10 years…”
December 12, 2022
“Despite the U.S. Federal Reserve’s aggressive rate hikes — including four consecutive hikes of 75 basis points — inflation is still running hot. Consumer prices in the U.S. climbed 0.4% in October and were up 7.7% from a year ago.
High inflation not only erodes the purchasing power of money but also means the Fed will likely remain hawkish. And that does not bode well for the stock market. Will inflation go back to normal anytime soon?
Bank of America doesn’t believe so. “Historically, it takes an average of 10 years for a developed economy to return to 2% inflation [once] the 5% threshold is breached,” the bank says in a recent note…”
https://finance.yahoo.com/news/bofa-warns-hot-inflation-might-160000338.html