US inflation may reach 3-4% by mid-2022
An increase in inflation in the United States next year is expected in the investment company Independent Strategy. According to its president, David Roche, by mid-2022, inflation from the March level of this year may increase to 3% and even 4%. This means that the yield on ten-year US treasury bonds could double from the current level of 1.6% by then. In his opinion, it will not be possible to avoid an increase in consumer prices, because consumers will start spending their accumulated savings. Analysts, discussing the future dynamics of prices, point out that high prices will affect the value of assets and corporate margins and reduce the purchasing power of Americans. At the same time, commenting on the growth of consumer prices by 0.6% in March compared to February, the Federal Reserve System considers this phenomenon temporary. If necessary, the regulator is ready to fight the increase in inflation by raising interest rates.