The U.S. economy is heading towards a period of stagflation, warns economist Savvas Savouri. This could have significant implications for the dollar, bonds, and stocks.
Dollar to Fall, Inflation to Rise, Savouri Warns
Savouri, the managing director of QuantMetriks, predicts a future where inflation rises, the dollar falls, and the yield curve steepens, reported MarketWatch. His forecasts are based on three main inflationary pressures: a weakening dollar, limitations on cheap migrant labor, and increased tariffs.
Savouri believes that the effects of tariffs have not yet been fully realized in the data. “If you look through the front windscreen rather than the rear-view mirror, it’s clear to see stagflation is coming to the U.S.,” he stated
In a note titled “The Inflationator vs …