Markets rallied over the week despite the steepest increase in US inflation data since 2008.  The latest monthly inflation spike extends a trend that accelerated earlier this spring, although the increases are being boosted in part by comparisons with relatively low inflation a year ago, when the pandemic depressed prices. 

 

The key event for this week is likely the US Federal Reserve’s meeting, which concludes on Wednesday night. While the Fed is expected to keep its benchmark interest rate unchanged — and at a near-zero level — the recent spike in consumer prices could spur discussion of other steps to tighten monetary policy. CLICK HERE