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Why 'near-term' but not 'broad-based' inflation is on the horizon

Inflation concerns persist as recent trends indicate a complex scenario. Invesco global market strategist Brian Levitt joins Market Domination anchors Josh Lipton and Julie Hyman to discuss the balancing act between inflation and growth. "If you've been watching the breakevens the way I have in the short term — so one-year [to] three-year breakevens — those had moved up. Meaning we're going to have some near-term inflation for obvious reasons," Levitt says. "The good news for investors — and the good news for the Federal Reserve — is that the 10-year (^TNX), while it's moved towards the higher end of where it typically is, it's still below 2.5%," he adds. Levitt also explains that while tariffs may temporarily increase prices, they aren't expected to cause widespread inflation. "I don't think it's broad-based inflation," he says. "If you remember, in 2019, the Federal Reserve actually lowered interest rates." Watch the video above to hear Levitt's insights on economic growth and the importance of clarity amid ongoing policy uncertainty. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Josh Lynch