TechFlow news — On February 27, according to Jinshi Data, Torsten Slok, Chief Economist at Apollo Global Management, said that the shift from globalization toward a more fragmented world is likely to fuel long-term increases in regional inflation rates.
The growing popularity of restrictive trade and anti-immigration policies indicates a changing geopolitical landscape, which could intensify global price pressures and weaken economic growth.
"We are moving toward a more fragmented world. Concerns about stagflation shocks form the backdrop of current market discussions," Slok warned in a report published yesterday, adding that upside inflation pressures in goods and labor markets will keep interest rates elevated for longer.
However, he added in an interview that if the economy begins to slow more quickly, the Federal Reserve may shift its focus from inflation to economic growth.
