Potential Risks May Accelerate U.S. Inflation, Analyst Warns

According to BlockBeats, on January 16, SEI analyst Jim Smigiel highlighted several potential risks that could lead to a resurgence in U.S. inflation, potentially keeping interest rates elevated for an extended period. This scenario suggests that U.S. Treasury yields might continue to rise. In a recent report, the Chief Investment Officer noted, "The bond market seems to share our concerns, as U.S. long-term Treasury yields have increased by approximately 90 basis points since the Federal Reserve unexpectedly cut rates by 50 basis points in mid-September 2024." Data from LSEG indicates that the money market currently anticipates a 37 basis point rate cut by the Federal Reserve this year, up from around 25 basis points before the release of U.S. inflation data on Wednesday.