Sculptor Capital Management reposted this
When asked by clients what worries us, one risk we discuss is that the perception of inflation having been tackled could itself be inflationary. As consumers, asset owners, and corporates become more confident in the economic outlook, particularly with respect to inflation, they tend to behave in a manner that could reignite inflation. Vibrant capital markets and rising asset prices only fuel the fire. Rents have always been a natural culprit here, and recent data suggests we cannot rule out such an outcome. Link to Wall Street Journal Article https://bit.ly/4bdGec5
