US inflation not (yet) a big threat to EM economies

Concerns about rising inflation pressures in the US have sent shockwaves through EM financial markets over the past week or so, but the economic fallout is likely to be limited. A sharp and sustained rise in US inflation would present a significant challenge for emerging economies and may yet materialise given the late-cycle fiscal relaxation passed recently by Congress. But we’re still some way from this being an immediate problem for EMs.