This podcast episode discusses the recent confusing U.S. inflation reports and the market's reaction to them. The economists initially thought that inflation would be lower than it was, and have had to increase their forecasts as new data is released. This suggests that the path down for inflation is not going to be smooth and easy. However, investors should take the recent data with a grain of salt, as it may not be an accurate reflection of the underlying trend. The Federal Reserve is likely to continue raising interest rates in the near term, and investors should move to a neutral stance on the US treasury market.
