The central bank has increased its benchmark interest rate from 0% to a range of 3.75% to 4% this year, including hikes of 75 basis points at the past four meetings.
“It is too early to start suggesting that these [inflation] data headlines will lead to a reversal in stance from the Federal Reserve, in which many investors are looking for a pivot away from raising interest rates at the fastest pace in a generation,” said Ahmad. “I would instead look at these readings as a reason for the overall pace of US interest rate hikes to slow because inflation expectations are still at a sustained high level.”
