Lacy Hunt & Brent Johnson: The US Has Entered A New Inflationary Era That Will Prove Bad For Bonds
Summary
Lacey Hunt, a former Fed economist, explains his pivot from deflation to inflation concerns, citing a secular capital shortage, the end of globalization, and near-zero national savings. He argues that massive physical investment needs for AI and infrastructure, combined with growing deficits, will drive up real and nominal interest rates. Hunt warns that current monetary easing and Treasury interventions distort market signals, while demographic declines and rising government spending threaten long-term economic growth. The discussion concludes with implications for investors, suggesting bo…
Listen ad-free on Castria