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Will Rising Core Inflation Lead to Steeper Rate Hikes?

VanEck of VanEck
Will Rising Core Inflation Lead to Steeper Rate Hikes?

With core inflation at 1.8%, it is likely that inflation achieves a “two-handle” (2%) soon, and rather than risk falling behind the curve, the Fed might tighten more aggressively. A February report by HSBC economist Stephen King identified all periods since 1990 in which the world economy has delivered synchronized growth. Mr. King finds that each was followed by some kind of economic or financial shock, attributed to excessive optimism and unanticipated shifts in monetary policy.