Inflation Outweighs Risks Of A Slowing Economy

<p>Fed's Bullard said that the policy rate is not yet in a zone that may be considered sufficiently restrictive. "The inflation data is showing that the Federal Reserve is winning the war against inflation, but that does not mean we should expect a cease fire. The risks of inflation outweigh the risks of a slowing economy. Markets participants are playing this pivot narrative again. When you look at the Fed Futures pricing, they were pricing in a 5% peak in Fed's fund rate going out to May of 2023. Today is relatively the same," says Jake Hanley.</p>