The Chief Investment Officer of Mellon Bank in New York predicts that persistently high inflation will weigh down on bonds.

Jason Granet, Chief Investment Officer of Mellon Bank in New York, stated that even after the current surge in energy prices caused by war subsides, inflation rates may remain high for a longer period of time, pushing up interest rates and weighing down bonds in the coming years. Granet was appointed as the chairman of the US Treasury Borrowing Advisory Committee last month. He said that the transportation of oil and natural gas through the Strait of Hormuz is unlikely to return to pre-war levels. In addition, other factors such as increased spending on artificial intelligence infrastructure may prolong the upward pressure on inflation beyond market expectations. "Forward inflation expectations indicate that global inflation will decline. My view is that inflation in various regions may persist longer," Granet said in an interview. "Overall, this should mean that interest rates will be higher."