Markets are not prepared to deal with this emerging risk
by Sue Chang
The Federal Reserve is trying to send the markets a message, but one Deutsche Bank economist says people are just not getting it — there is a looming threat to the economy and it’s not another recession or a crisis.
“Many clients I meet worry that the biggest macro risk on the horizon is another financial crisis,” said Torsten Slok, Deutsche Bank’s chief international economist.
But the bigger threat, according to Slok, is accelerating inflation.
“This is what the Fed is trying to tell us when they repeatedly point out that we are near full employment,” he said.