GOVERNMENT REPORT SERIES
Investors on Friday were signaling they believe higher rates have already begun to bring inflation down.
- The five year break even rate is a measure of where the market believes inflation will be in five years’ time fell to its lowest level since January 2022 (see chart below)
- The Atlanta Fed’s and the Census Bureau both forecast the US economy would contract by 2.1 per cent in the second quarter. That indicates a recessionary period which by definition is two consecutive quarter of contractions .
