The idea that US interest rates will stay higher for longer is probably wrong
- Written by Alan Shipman, Senior Lecturer in Economics, The Open University
The 0.4% rise in US consumer prices in March didn’t look like headline news. It was the same as the February increase, and the year-on-year rise of 3.5% is still sharply down from 5% a year ago.
All the same, this modest uptick in annual inflation from 3.2% in February has cast doubt on whether the US central bank, the Federal Reserve, can...