(Bloomberg) -- Inflation is “definitely becoming” more persistent and pervasive than expectations, according to Blackstone Inc. President Jonathan Gray. 

The increase in money supply as the U.S. government responded to the Covid-19 pandemic is one reason, he said in a Bloomberg Television interview on Thursday. Structural shortages on the supply side are contributing to the issue, he added.

Market-implied expectations for U.S. inflation for the next half-decade surged to the highest in 15 years on Thursday.

Gray’s firm reported record assets under management Thursday, as well as distributable earnings that beat analysts’ estimates.

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