Supply chain woes from Covid and energy may spark ’70s-style inflation, economist Stephen Roach warns

“…Economist Stephen Roach is warning that the U.S. may be on a collision course with 1970s-type inflation.

The former Morgan Stanley Asia chairman is worried that the impact of energy price spikes on China’s struggling supply chain will be the tipping point.

Crude oil topped $80 a barrel this week for the first time since 2018 before settling to the mid-$70s.

“We’ve had supply chain issues really now for the past year and a half. They’ve afflicted many commodities, inputs like semiconductors and now there’s energy and power related shortages in China,”

Roach told CNBC’s “Trading Nation” on Wednesday.

He started sounding the alarm about China’s supply chain problems last year as the country was trying to cope with Covid-19 shutdowns…”

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