Şebnem Kalemli-Özcan
In their preoccupation with high public debt, rising bond yields, and dizzying AI valuations, investors have seemingly forgotten the supply shocks shaping the underlying inflation outlook. But anyone worried about debt and yields must reckon with the disruptions created in the name of protecting domestic markets.
PROVIDENCE—It was only a few months ago that investors were preoccupied with US tariffs and the closure of the Strait of Hormuz. But these issues have since receded from the forefront of our concerns, overshadowed by anxiety over the AI boom and possible bust, rising bond yields, and mounting public debt.