Consumer prices rose 3.8% in April from a year earlier, the hottest inflation since May 2023, according to a report Tuesday, but financial markets are mostly taking it in stride. The prevailing narrative, reflected in the prices of Treasury securities, is that this bout of energy-driven inflation will probably pass in short order, and the Federal Reserve won’t have to hike interest rates in response. Personally, I wouldn’t be quite so eager to downplay the risk that it sticks around for a while.
www.bloomberg.com
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Bond Markets Are Too Cool About Hot Inflation
