Montfort Big Picture – Revival of Inflation and Weak Dollar

21 Jun 2019

It would be a mistake to infer from the June meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve System (Fed), where the US central bank affirmed market expectations of imminent policy rate cuts, that disinflation will dominate the world economy in the period ahead. President Trump has recast US monetary policy as servant to his fiscal interventions and, with the effects of the White House’s supply side initiatives only partially realised, business and investors should prepare for higher expected inflation and a weaker US dollar.