News Analyst
The Federal Reserve’s concerns about the risks of a rebound in US inflation appear justified, according to Thierry Wizman, global FX and rates strategist at Macquarie.
Wizman pointed out that inflation may increase due to the threat of import tariffs if they trigger a “before the fact” effect, “as consumers and businesses may stockpile goods en masse.” before the price increase that would accompany customs duties,” in a report. Customer note from Thursday.
He also noted that 5-year breakeven inflation rates continue to climb towards the critical level of 2.5%, “which marks the demarcation between consistency with the 2.0% inflation target of the Fed (on the PCE IP) and the inconsistency with achieving this objective.”
https://www.marketwatch.com/bulletins/redirect/go?g=83e5eb70-a5b6-4818-953a-f4b33ff8c3e8&mod=mw_rss_bulletins
