REUTERS/Brendan McDermidLONDON, June 25 (Reuters) - BofA expects U.S. inflation to remain elevated for two to four years, against a rising perception of it being transitory, and said that only a financial market crash would prevent central banks from tightening policy in the next six months.
Hartnett thinks inflation will remain in the 2%-4% range over the next 2-4 years.
U.S. inflation has averaged 3% in the past 100 years, 2% in the 2010s, and 1% in 2020, but it has been annualising at 8% so far in 2021, Bofa said in the note.
BofA clients were still heavily invested in equities, with cash allocations well below long-term averages at 11.2%.
In the week to Wednesday, investors pumped $7 billion into equities and $9.9 billion into bond funds, while pulling $53.5 billion from cash funds, BofA calculated, using EPFR data.
Brendan McDermid LONDON, Michael Hartnett, Hartnett, Bofa, Jerome Powell, Thyagaraju Adinarayan, Karin Strohecker
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