A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
Kerry Craig
Opinion

Opinion

Macroscope by Kerry Craig

Inflation fears are not unfounded but a nightmare scenario is unlikely

  • True, an inflation spike and sharply higher bond yields would derail markets. But this is unlikely given the slack in the economy and central bankers’ reluctance to unwind easy policy

A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
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Kerry Craig

Kerry Craig

Kerry Craig is a global market strategist at JP Morgan Asset Management.