In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake if not in the near term then in 2023 and beyond.
Deutsche Bank warns of rising inflation
Deutsche Bank Issues Stark US Inflation Warning, Seeing Economic Parallels to 1940s, 1970s
Inflation could send the global economy into recession as central banks lose control, according to Deutsche Bank.
The current political climate means that jobs growth may be a higher priority in the coming years than keeping inflation at bay.
Unlike in the early 1980s, when then-President Ronald Reagan supported Fed Chair Paul Volcker “putting the economy through a wringer to quell inflation, the problem is today viewed as much less important than unemployment and the broader goals of achieving greater equality in income and wealth,” according to the report.