Inflation risk underestimated, warns UBS chairman

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The specter of inflation is emerging even before the end of the pandemic restrictions. The financial markets do not appreciate this surprise at all. Yields are taking the lift, to 1.36% for 10-year US Treasury bonds, from less than 1% at the start of January. The actions correct severely Tuesday, pending a hearing of Jerome Powell, chairman of the Fed, before the US Senate on Tuesday evening. In this context, Axel Weber, president of UBS, in a column published by the media network Project Syndicate. expressed fears so clear and strong that they marked the spirits.

“The economists’ models are based on data from the past 50 years, but current economic conditions are unprecedented,” writes Axel Weber. The rise in prices should exceed 3% in May in the United States and 2% in the euro zone, he predicts.