Hoping to snag a cheap airline ticket for summer travel? Good luck, new inflation data show

Airfare costs have taken off ahead of a summer travel season running on steep demand and high gas prices, according to new price inflation data released Wednesday. The record-breaking cost increase for airline tickets stood out in a Consumer Price Index reportt that showed an overall 0.3% increase in the cost of living from March … Read more

The Fed wants to raise rates quickly, but may not know where to stop

Federal Reserve Chairman Jerome Powell is accelerating monetary tightening. Its objective seems simple: bring interest rates to a “neutral” level, a parameter that does not stimulate or slow down growth. But there is a catch: even in normal times, no one knows where this theoretical level is. And these are not normal times. There are … Read more

Traders and investors may have bitten on a ‘headache’ from a soft single US inflation figure

Two government reports in the past two days point to the highest annual U.S. inflation rates in four decades, but many traders and investors are looking beyond the hot readings and instead focusing on prospects that the trend will reverse soon. US stocks and bonds rallied on Wednesday, despite the headlines. The starting point for … Read more

How bad is bond market carnage? This unlikely sector is down 10% as inflation weighs on returns.

High-quality bonds should hold up better than stocks, right? Especially if the defaults aren’t really the concern. But that hasn’t been the case lately for the debt issued by many Fortune 500 companies, a sector particularly hard hit since the Federal Reserve shifted its stance to urgently cool inflation. High quality US corporate bonds, the … Read more

The silver lining of soaring inflation: I bond yields set to climb above 9%

CHAPEL HILL, NC — Want to earn more than 8% with US Treasuries over the next 12 months? Of course you would, especially given higher than expected inflation figures reported this week, with the consumer price index rising 8.5% over the past 12 months. Our absolute minimum objective with a US Treasury is not to … Read more

Here’s Wall Street’s first recession call of the new inflation era

One of the big questions over the past week is whether to heed the bond market’s apparent warning that the US economy could slide into recession after the Federal Reserve went into a tightening frenzy. At least one Wall Street bank now agrees. “Two shocks in recent months, the war in Ukraine and the rise … Read more