Hedge fund Brevan Howard is predicting an increased threat of a wage-price spiral crisis, last seen in the 1970s, due to high inflation and tight labour markets, according to a report by Bloomberg.

A similar situation arose during the "Volcker Era", which ultimately proved extremely costly to reverse, the report credits Brevan Howard as saying in a note to shareholders of one of its listed funds.

The mammoth macro hedge fund also believes that the Fed is "significantly" behind the curve with regards to raising interest rates, advising that they should be between 4 and 6 per cent currently.