“There will be consequences for having accommodative monetary policy for a long time,” said Goldman Sachs (GS) Chief Executive David Solomon at the Future Investment Initiative conference in Saudi Arabia's capital, Riyadh, per Reuters.

“There is a risk of higher inflation and slower growth globally,” adds the GS leader said Reuters.

FX implications

Given the multi-year high inflation expectations in the US and Eurozone, the monetary policy consolidation is back on the table, which in turn challenges the latest run-up in the equities.

Read: Uneven economic recovery vs inflation