U.S. inflation "arrives as expected," when will the market price in "interest rate hikes"?
TS Lombard's Blitz: U.S. inflation follows economic growth, and when the economy is at full employment, the lag time is short, just like now, as confirmed by January's CPI data. As shown in the chart, what particularly worries the Federal Reserve is that the prices of goods (excluding food and energy) that have long suppressed inflation are accelerating... This year, the market will start pricing in interest rate hikes for 2026 at some point
TS Lombard's Blitz:
U.S. inflation follows economic growth, and when the economy is at full employment, the lag time is short, just like now, as the January CPI data confirms.
As shown in the chart, what particularly worries the Federal Reserve is that the prices of goods (excluding food and energy) that have long suppressed inflation are accelerating...
This year, the market will start pricing in interest rate hikes for 2026 at some point.
