“There will be consequences for having accommodative monetary policy for a long time,” said Goldman Sachs (GS) Chief Executive David Solomon at the Future Investment Initiative conference in Saudi Arabia's capital, Riyadh, per Reuters.
“There is a risk of higher inflation and slower growth globally,” adds the GS leader said Reuters.
FX implications
Given the multi-year high inflation expectations in the US and Eurozone, the monetary policy consolidation is back on the table, which in turn challenges the latest run-up in the equities.
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