Senior bank and money management professionals made this claim while speaking at the Bloomberg New Economy Forum in Singapore. Although Lim Chow Kiat, CEO of GIC Pte, views inflation as an opportunity to invest, John Waldron, president and chief operating officer of Goldman Sachs Group Inc., stated that inflation is still the biggest danger.
On a panel at the forum, Lim stated that the current yield on 10-year Treasury inflation-protected securities, roughly 2.5%, has not been seen by the markets in “a long time.” “I think that’s very appealing, and it presents a serious threat to other asset classes.”
Markets are betting that US interest rates will need to begin falling in 2019. Federal Reserve policymakers are still struggling to balance economic expansion and tightening conditions, and chair Jerome Powell has signaled that the central bank may be done raising rates.
“Inflation remains, in my opinion, the single biggest risk,” stated Waldron. Consequently, “I believe that the geopolitics that currently overlaid in a much more profound way and inflation are by far my biggest concerns.”
Meanwhile, the CEO of Franklin Templeton Jennifer Johnson stated that things will only get harder for central banks moving forward during her remarks on the same panel.
“The road to 2% is going to be much more difficult,” she declared.
–With help from Low De Wei and Tassia Sipahutar.
- Published By Team Nation Press News