Investment management firm PIMCO has warned that markets may be underestimating the risk of inflation re-accelerating in the United States. According to PIMCO, there is a growing concern that inflation could pick up pace, contrary to the current market sentiment.
PIMCO's outlook suggests that the recent surge in inflation, driven by factors such as supply chain disruptions and pent-up consumer demand, may not be transitory as many believe. The firm highlights that the Federal Reserve's accommodative monetary policy and ongoing fiscal stimulus measures could further fuel inflationary pressures.
