Global Research Analyst

Key takeaways

  • Strong U.S. economic growth and a tight labor market historically have led to higher inflation. Yet, we currently see inflation and inflation expectations settling at a relatively lower level.
  • According to research by the Federal Reserve Bank of Kansas City, longer-term inflation expectations have been a good representation of future inflation trends.

What it may mean for investors

  • We believe that low inflation could benefit equities through lower costs and potentially higher margins.

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