The US Isn't Fighting A Temporary Inflation Spike — It's Entering A 2-Year Mini-Cycle

Bank of America warns that the US is entering a reflationary mini-cycle lasting through 2027-2028, not experiencing temporary inflation. With inflation data well above the Fed's 2% target and long-term Treasury yields above 5%, the market is pricing in a regime shift. This environment favors industrials and financials over high-multiple growth stocks, as rising discount rates pressure tech valuations.