Cause and Effect
Fade the Trump risk premium – buy USD
13 February 2017
Concerns over stagflation return
In our view, the most interesting and important development in the global financial
market so far this year has been the divergence between rising US inflation breakevens
and falling US real yields. Rightly or wrongly, investors appear to have become
concerned about upside risk to inflation and downside risk to growth.
Source: House Oversight Committee release, November 2025