Multi Asset Monthly: The Power Of The Inflation Theme

Inflation is the number one topic in financial markets. Central banks have become much more hawkish. The Fed is expected to hike rates to 2.5% this year, and most other central banks will also tighten policy. The outlier in the developing world is the Bank of Japan, which continues to defend the upper bond yield limit. Soaring commodity prices and supply chain problems are two major inflation drivers.