The world's largest bond market sold off after another hot inflation report bolstered bets that the Federal Reserve will be in no hurry to cut interest rates even as some areas of the economy show signs of slowing.
Treasury yields rose and stocks fell as data underscored the Fed's challenges in meeting its 2% inflation target. Following the consumer price data, the producer price index also signaled an increase in cost pressure. In contrast, retail sales fell short of estimates. While it's probably too early to draw any conclusions, the numbers have raised some eyebrows about the specter of stagflation.
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