US Rates: Mounting inflationary pressure in the US

TIPS Strategist Phoebe White and US Economist Peter McCrory discuss the outlook for US inflation.  Given a shift toward more inertial categories of inflation and the escalating conflict in Ukraine, we now expect higher inflation throughout the remainder of this year and into next.  For now, we still look for the Fed to hike 25bp per meeting, beginning next week. We discuss how US inflation markets have reacted to the surge commodities prices. Inflation risk premium has risen along the curve, and market-based measures of longer-run inflation expectations have risen to 7-year highs.

 

This podcast was recorded on March 8, 2022.

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