Inflation has abated, interest rates next?

U.S. inflation has nearly reverted back to its 200 week moving average.

Whether it sees 2% or not, is mute. It has abated and mean reverted.

Such mean reversions are honoured more so after such parabolas.

The bet is now whether interest rates follow……and what that means for various asset classes and business sectors.

The U.S. 2 year government bond yield is the orange line.

July 12, 2024

by Rob Zdravevski

rob@karriasset.com.au