There is a scenario where the Fed actually hikes rates again after a pause of several meetings? The US Debt Default saga is ragging on a little uncomfortably. There is a reason for the muted reaction of US markets to the Inflation number yesterday. Core Inflation, the Federal Reserve’s preferred measure is now consistently well above the headline rate. 5.5% compared to 4.9%, and seems to be stabilising over recent months at these extreme elevated levels. The Federal Reserve’s biggest fear in its entire rule book is inflation becoming entrenched at such high levels. This is because such an outcome can truly destroy an economy for a decade or more. That headline inflation re-accelerated from 0.1% to 0.4% on the month, is also hard to look away from. Yes, inflation has moderated, but yet remains at extreme levels. And here is the clincher as to why the next move by the Federal Reserve, after a period of pause to assess the full flow through of previous hikes, could again be to hike rates still further. Catch up with the latest news and market analysis here https://acy.com/en/market-news Get in touch today: Web: https://www.acy.com Twitter: https://twitter.com/ACY_Securities Facebook: https://www.facebook.com/acy.securities/#acysecurities #inflation #debtceiling #interestrates #thefed #usdollar #economicnews @ACYSecuritiesAustralia Foreign exchange and derivatives trading carries significant risk and is not suitable for all investors. You do not own, or have any interest in, the underlying assets. Before you decide to trade foreign exchange and derivatives, we encourage you to consider your investment objectives, your risk tolerance and trading experience. ACY Securities Pty Ltd (AFSL: 403863) provides general advice that does not consider your objectives, financial situation or needs. You should consider if you are part of our Target Market by reviewing our TMD and read our FSG and PDS to ensure you fully understand the risks. The content of this presentation must not be construed as personal advice and the information in this presentation is prepared without considering your objectives, financial situation or needs; please seek advice from an independent financial or tax advisor if you have any questions. ACY Securities Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC AFSL:403863). Registered address: ACY Tower, Level 18, 799 Pacific Hwy, Chatswood NSW 2067. AFSL authorised us to provide financial services to Australian Residents or Businesses. © 2018 - 2023 ACY Securities is a brand name of ACY AU and ACY LTD, ACY Securities Pty Ltd. All rights Reserved.