Too Much Inflation, Too Little Growth: Goldman Strategists Warn Rates Are Fighting The Last War

Even as Iran war headlines oscillate, macro markets still need to price an energy price shock of uncertain duration.

While the initial impacts - higher inflation and a hawkish shift in policy rates across G10 and EM economies - are a rational repricing, top Goldman Sachs strategists, Dominic Wilson and Kamakshya Trivedi, warn that the challenge is how far that repricing needs to go to reflect the upside tail of the distribution.

Too much inflation, too little growth