Bill Mott, manager of the £309m PSigma Income fund, has warned investors and savers an inflection point is approaching which could cause inflation to spike.
CPI inflation jumped unexpectedly to 2.7% in November, prompting a number of industry commentators to warn inflation could rocket up to near double-digit territory in the coming years. Mott said he too is growing more concerned with inflation, and he warns there are five reasons it could race higher in the medium term. 1. Quantitative Easing is now unlimited Mott warns quantitative easing (aka ‘money printing') in the USA is now open-ended, so potentially unlimited. "The Federal Reserve is buying $40bn of Mortgage Backed Securities and $45bn of Treasuries per month," he said. ...
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