The Political Costs of Affordability

Paul Donovan discusses how political pressure regarding US food and energy costs is leading to executive interventions, while also noting steady core inflation and a lingering political risk premium in UK bonds.

Key Takeaways

• 1.The US political landscape is shifting focus toward an 'affordability crisis,' with President Trump utilizing executive orders to address rising beef prices.
• 2.Food and energy prices have a disproportionate impact on consumer inflation perceptions due to their high purchase frequency, even if core inflation remains steady.
• 3.UK bond markets are showing signs of a political risk premium following recent periods of high uncertainty and political instability.

Table of Contents

• Audio
• Global asset class preferences definitions
• Appendix
• Risk information
• Generic investment research – Risk information

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