Deutsche Bank Warns of Growing Market Dislocations as Inflation and Rate Risks Build

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Investors are underestimating the magnitude of interest rate increases needed to combat inflation, given the high price pressure, according to Deutsche Bank AG strategist Henry Allen. The "fundamental disconnection" between the prospect of limited interest rate increases by the Federal Reserve (Fed, the US Central Bank) and the European Central Bank (ECB) and rising inflationary pressures seems unsustainable, he said. The US ISM service index su…

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Markets keep a combination difficult to sustain. Deutsche Bank identifies four dislocations between expectations about interest rates, inflationary pressures, oil and the resilience of risk assets that could require adjustment.See more: Three opportunities and three risks if you want to invest in Latin America before the end of 2026The diagnosis of Henry Allen, a macro strategist of the German bank, is part of a contradiction.Rates markets still…