Executive Summary
Morgan Stanley's Chief Investment Officer identifies a structural shift toward persistent inflation driven by fiscal dominance and supply constraints that fundamentally breaks traditional monetary policy transmission. Lisa Shellett argues policy makers face unprecedented constraints: debt-to-GDP ratios limit fiscal flexibility while $2 trillion annual deficits force the Fed to manage Treasury funding rather than fight inflation. The AI infrastructure boom creates a $10 trillion spending wave dri...
Key Investment Opportunity
Real Assets Inflation Hedge Portfolio
Structural inflation regime requires portfolio diversification beyond traditional stock-bond allocation into assets that benefit from or hedge against persistent price increases
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