“What you see built into the curve today is a fall-off in rates and a fall-off in inflation. But I believe that you’ll see it staying higher than those levels that are built into market expectations now,” he added.
That’s upping risks for stagflation; something economists have been eyeing as inflation skyrocketed to a 41-year record this summer.
Top economist Mohamed El-Erian warned that the US was already slipping into a stagflation crisis, and “Dr. Doom” economist Nouriel Roubini sounded alarms for an even more severe stagflationary debt crisis. This market crash combines elements of 70s-style stagflation and the 2008 financial crisis.
