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Inflation is set to become more severe due to ongoing disruptions in energy and food markets, according to Dario Perkins. He highlights uncertainty over whether risk assets will react if the underlying conflict appears resolved, suggesting they may remain resilient unless unexpected economic deterioration occurs.
Perkins has previously warned that a downturn in the U.S. economy could occur faster than in other advanced economies, citing factors such as labor hoarding in earlier commentary. He has also examined the effects of high oil prices, noting that while they typically raise short-term inflation and reduce income, there is limited long-term impact on growth according to his recent analysis. These observations provide context for his current views on inflation and risk assets.