I posted earlier from Deutsche Bank's outlook for the Federal Reserve:

A separate piece from Deutsche Bank says not to ignore the risk of higher inflation, outlining five reasons this is rising:

  • Central banks have implemented more aggressive short-term monetary easing than anticipated.
  • Commodity prices are rising due to China’s stimulus measures and ongoing tensions in the Middle East.
  • U.S. economic data remains solid, suggesting the economy may avoid a more severe downturn.
  • The September CPI report exceeded expectations, showing stronger inflation.
  • Money supply growth is picking up pace.
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