Fears of accelerating inflation, higher rates overblown: economists

London

SEVERAL economists are of the view that global market participants have exaggerated fears about accelerating inflation and higher interest rates.

Wall Street and other major stock markets, as well as sovereign and corporate bonds, have all fallen in recent days because of these worries.

Both Hoisington Investment Management chief economist Lacy Hunt and Macro Hedge Advisors founder Brendan Brown disagree with the economic consensus of further inflation and higher bond yields.

If the Fed and other central banks agree with the "inflationary psychosis" and raise rates, they feel the resulting business downturn could turn out to be wors…

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