The sentiment feels like the market is starting to think more about normalizing prices. The 0.3% CPI reported last week was an acceleration from the prior month of 0.2% and the trailing 12 months of 1.8%. There was a big jump in medical cost this month. The Federal Reserve has wanted a 2% inflation rate. In the last 4 months, the annualized inflation rate has been at 2.7%. It would be extremely surprising if the Fed does not increase interest rates this year barring a recession in the U.S.
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Market in a Minute 2015-5-27