New Delhi, June 5 -- The news that Bulgaria is poised to join the Eurozone with effect from 2026 is good news for the euro. Born in 1999, Europe's common currency has acquired a safe-haven sheen in the aftermath of US tariff announcements and their variability, which have combined with the resultant uncertainty to promise America's economy both slower growth and higher inflation.

For the US, if stagflation is rare, its self-induced version would be rarer still. Bond investors have been particularly nervous. Yields on US government bonds jumped after Moody's cut its sovereign credit rating in mid-May. This sell-off was in contrast with the market's response to downgrades by S&P and Fitch earlier, when the dollar's safe-haven appeal had at...