Amid growing concerns over elevated inflation and its impact on the post-pandemic economic recovery, the latest warnings from America’s billionaire entrepreneurs are adding to the policymakers’ misery while aggravating the investors’ concerns.
Tesla Inc.’s founder Elon Musk, in a Twitter response, said, “I don’t know about long-term, but short-term we are seeing strong inflationary pressure.”
Meanwhile, Twitter CEO Jack Dorsey predicted that the US could soon be hit by " hyperinflation " and warned that it "is going change everything".
These comments come after Fed Chairman Jerome Powell said last Friday that inflation pressures "are likely to last longer than previously expected", and could last "well into next year".
Market implications
The US Treasury yields are looking to stabilize after the two-day correction, with the benchmark 10-year rates hovering around 1.64%.
The S&P 500 futures gain 0.25% on the day, riding higher on a record Wall Street close amid stronger earnings reports. Meanwhile, the US dollar index is resuming its upbeat momentum, closing in on the 94.00 level once again.