Schroders' David Rees Says the Fed Is Behind the Curve After Hot U.S. CPI

According to Jin10, after U.S. core inflation came in above expectations, interest-rate swap markets further raised expectations for Federal Reserve rate hikes, with pricing now showing a 90% chance of a hike next week and two hikes this year fully priced in. Schroders Global Head of Economics David Rees said the Fed is already behind the curve and can either raise rates next week to let U.S. short-term borrowing costs rise in an orderly way, or hold steady and risk uncontrolled increases in U.S. long-term borrowing costs.