Inflation fears infect world markets
Price pressures are building, which could signal the end of the era of easy money
Investors have finally detected the whiff of inflation. Whether it lingers is the debate now underway asstocks and bonds slide worldwide amid concern that prices are set to accelerate after their post-crisis lull. Though inflation still looks under control in most major economies, pressure is building and there are legitimate reasons to say its return is much nearer than for some time.
That could force the US Federal Reserve and fellow central banks to tighten monetary policy more aggressively than anticipated, meaning a sharper end tothe era of easy money that had cushioned markets for years.
