The Charging Bull statue is shown in New York's financial district, Tuesday, Sept. 8, 2020. In addition, federal stimulus spending is beginning to make its way to households that need assistance, households with excess personal savings and lots of pent-up demand from the pandemic are ready to spend, and business-to-business spending is on the rise too. Zandi says these concerns about rampant, uncontrollable inflation are “much too premature,” especially since it will be years before the U.S. reaches pre-pandemic employment levels. Rather, the bigger and more pressing threat to the recovery is ballooning asset prices, he says, pointing to recent surges in the equities market, housing market, bond market, commodities market, and even the cryptocurrency market. With valuations sky high, these markets could be vulnerable to major corrections and crashes that have the potential to reverberate through the entire economy.

Source: Forbes February 15, 2021 20:26 UTC